RenewableS 2013 GlObal STaTUS RePORT - REN21

RenewableS 2013 

GLOBAL STATUS REPORT 

2013

REN 21 

STEERING 

COMMITTEE 

INDUSTRY ASSOCIATIONS 

Dennis McGinn 

American Council on Renewable Energy 

(ACORE) 

Ernesto Macías Galán 

Alliance for Rural Electrification (ARE) 

David Green 

Clean Energy Council (CEC) 

Li Junfeng 

Chinese Renewable Energy Industries 

Association (CREIA) 

Rainer Hinrichs-Rahlwes 

European Renewable Energy Council 

(EREC) 

Steve Sawyer 

Global Wind Energy Council (GWEC) 

Marietta Sander 

International Geothermal Association (IGA) 

Richard Taylor 

International Hydropower Association 

(IHA) 

Heinz Kopetz 

World Bioenergy Association (WBA) 

Stefan Gsänger 

World Wind Energy Association (WWEA) 

INTERNATIONAL ORGANISATIONS 

Bindu Lohani 

Asian Development Bank (ADB) 

Piotr Tulej 

European Commission 

Robert K. Dixon 

Global Environment Facility (GEF) 

Paolo Frankl 

International Energy Agency (IEA) 

Adnan Z. Amin 

International Renewable Energy Agency 

(IRENA) 

Veerle Vandeweerd 

United Nations Development Programme 

(UNDP) 

Mark Radka 

United Nations Environment Programme 

(UNEP) 

Pradeep Monga 

United Nations Industrial Development 

Organization (UNIDO) 

Vijay Iyer 

World Bank 

NGOs 

Ibrahim Togola 

Mali Folkecenter/ Citizens United for 

Renewable Energy and Sustainability 

(CURES) 

Irene Giner-Reichl 

Global Forum on Sustainable Energy 

(GFSE) 

Sven Teske 

Greenpeace International 

Emani Kumar 

ICLEI – Local Governments for 

Sustainability South Asia 

Tetsunari Iida 

Institute for Sustainable Energy Policies 

(ISEP) 

Tomas Kaberger 

Japan Renewable Energy Foundation 

(JREF) 

Harry Lehmann 

World Council for Renewable Energy 

(WCRE) 

Athena Ronquillo Ballesteros 

World Resources Institute (WRI) 

Rafael Senga 

World Wildlife Fund (WWF) 

MEMBERS AT LARGE 

Michael Eckhart 

Citigroup, Inc. 

Mohamed El-Ashry 

United Nations Foundation 

David Hales 

Second Nature 

Kirsty Hamilton 

Chatham House 

Peter Rae 

REN Alliance 

Arthouros Zervos 

Public Power Corporation 

NATIONAL GOVERnMENTS 

Mariangela Rebuá de Andrade Simões 

Brazil 

Hans Jørgen Koch 

Denmark 

Manfred Konukiewitz/Karsten Sach 

Germany 

Shri Tarun Kapoor 

India 

Øivind Johansen 

Norway 

David Pérez 

Spain 

Paul Mubiru 

Uganda 

Thani Ahmed Al Zeyoudi 

United Arab Emirates 

Tom Wintle 

United Kingdom 

SCIENCE AND ACADEMIA 

Nebojsa Nakicenovic 

International Institute for Applied Systems 

Analysis (IIASA) 

David Renné 

International Solar Energy Society (ISES) 

Kevin Nassiep 

South African National Energy 

Development Institute (SANEDI) 

Rajendra Pachauri 

The Energy and Resources Institute (TERI) 

EXECUTIVE SECRETARY 

Christine Lins 

REN21 

Disclaimer: 

REN21 releases issue papers and reports to emphasise the importance of renewable energy and to generate discussion of issues central 

to the promotion of renewable energy. While REN21 papers and reports have benefitted from the considerations and input from the REN21 

community, they do not necessarily represent a consensus among network participants on any given point. Although the information given in 

this report is the best available to the authors at the time, REN21 and its participants cannot be held liable for its accuracy and correctness. 

2

FOREWORD 

Access to modern energy enables people to live better lives— 

providing clean heat for cooking, lighting for streets and homes, 

cooling and refrigeration, water pumping, as well as basic 

processing and communications. Yet over 1 billion people still 

lack access to modern energy services. 

As a result of the UN Secretary General’s Sustainable Energy for 

All Initiative and the upcoming Decade of Sustainable Energy 

for All, achieving universal energy access has risen to the top of 

the international agenda. However, given that the world recently 

passed 400 parts per million of atmospheric CO 2 —potentially 

enough to trigger a warming of 2 degrees Celsius compared 

with pre-industrial levels—meeting growing energy needs in 

a climate-constrained world requires a fundamental shift in 

how those energy services are delivered. Renewable energy, 

coupled with energy efficiency measures, is central to achieving 

this objective. 

Renewables already play a major role in the energy mix in many 

countries around the world. In 2012, prices for renewable 

energy technologies, primarily wind and solar, continued to fall, 

making renewables increasingly mainstream and competitive 

with conventional energy sources. In the absence of a level 

playing field, however, high penetration of renewables is still 

dependent on a robust policy environment. 

Overall, the rate of policy adoption has slowed relative to the 

early-to-mid 2000s. Revisions to existing policies have occurred 

at an increasing rate, and new types of policies have begun 

to emerge to address changing conditions. Integrated policy 

approaches that conjoin energy efficiency measures with the 

implementation of renewable energy technologies, for example, 

are becoming more common. 

Global investment in renewable energy decreased in 2012, 

but investment expanded significantly in developing countries. 

Global investment decreased in response to economic and 

policy-related uncertainties in some traditional markets, as well 

as to falling technology costs, which had a positive effect on 

capacity installations. Renewable energy is spreading to new 

regions and countries and becoming increasingly affordable in 

developing and developed countries alike. 

At the same time, falling prices, combined with declining policy 

support in established markets, the international financial 

crisis, and ongoing tensions in international trade, have challenged 

some renewable energy industries. Subsidies to fossil 

fuels, which are far higher than those for renewables, remain 

in place and need to be phased out as quickly as possible. The 

emergence of shale gas brings a new dynamic to the energy 

market, and it remains to be seen how it will affect renewable 

energy deployment globally. 

Despite fiscal and policy uncertainties, renewables are bringing 

modern energy services to millions of people, and increasingly 

meeting the growing demands for energy in many countries. 

Widespread deployment of renewable energy technologies is 

changing the energy-access dynamic in a number of developing 

countries, and is turning rural villages into thriving centres 

of commerce. Globally, in just five years, solar PV soared from 

below 10 GW in 2007 to just over 100 GW in 2012. In the EU, 

renewables accounted for almost 70% of new electric generating 

capacity in 2012. 

We stand on the cusp of renewables becoming a central 

part of the world’s energy mix. As technical constraints are 

overcome, most of the alleged limitations to achieving higher 

shares of renewables are due to a lack of political will to enact 

the necessary policies and measures. It is time to address this 

remaining hurdle. The Renewables 2013 Global Status Report 

provides renewable energy proponents and decision makers 

with information and motivation to tackle the challenges ahead. 

On behalf of the REN21 Steering Committee, I would like to 

thank all those who have contributed to the successful production 

of the GSR 2013. These include lead author/research 

director Janet L. Sawin, together with the other section authors; 

the GSR project managers, Rana Adib and Jonathan Skeen; and 

the entire team at the REN21 Secretariat, under the leadership 

of Christine Lins. Special thanks go to the ever-growing network 

of more than 500 contributors, including authors, researchers, 

and reviewers, who participated in this year’s process and 

helped make the GSR 2013 a truly international and collaborative 

effort. 

The REN 21 Renewables 2013 Global Status Report provides 

useful insight into the global renewable energy market and 

policy arena. I trust that it will serve as an inspiration for your 

work towards a rapid worldwide transition to a renewable 

energy future. 

Arthouros Zervos 

Chairman of REN21 

3

GSR 2013 TABLE OF CONTENTS 

Foreword ....................................... 3 

Acknowledgements ................................. 8 

Executive Summary ................................ 12 

Selected Indicators Table ............................ 14 

Top Five Countries Table ............................. 17 

01 GLOBAL MARKET AND INDUSTRY OVERVIEW 18 

Power Sector ................................. 21 

Heating and Cooling Sector ..................... 25 

Transportation Sector .......................... 25 

02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY 

Bioenergy .................................... 27 

Geothermal Heat and Power ..................... 33 

Hydropower .................................. 35 

Ocean Energy ................................. 39 

Solar Photovoltaics (PV) ........................ 40 

Concentrating Solar Thermal Power (CSP) ......... 44 

Solar Thermal Heating and Cooling ............... 46 

Wind Power ................................... 49 

03 INVESTMENT FLOWS 56 

Investment by Economy ........................ 57 

Investment by Technology ...................... 61 

Investment by Type ............................ 62 

Renewable Energy Investment in Perspective ...... 63 

Development and National Bank Finance .......... 63 

Early Investment Trends in 2013 ................. 63 

04 POLICY LANDSCAPE 64 

Policy Targets ................................. 65 

Power Generation Policies ...................... 68 

Heating and Cooling Policies .................... 70 

Transport Policies ............................. 72 

Green Energy Purchasing and Labelling ........... 73 

City and Local Government Policies ............... 73 

05 RURAL RENEWABLE ENERGY 80 

Renewable Technologies for Rural Energy ......... 81 

Policies and Regulatory Frameworks .............. 83 

Industry Trends and Business Models ............. 84 

Africa: Regional Status ......................... 85 

Asia: Regional Status ........................... 86 

Latin America: Regional Status .................. 87 

The Path Forward ............................. 87 

06 FEATURE: SYSTEM TRANSFORMATION 88 

Shifting Paradigms: From Integrating Renewables 

to System Transformation ....................... 89 

The Technology Challenge ...................... 90 

The Economic Challenge ........................ 91 

System Transformation Has Begun ............... 91 

Outlook ...................................... 92 

Reference Tables ................................... 93 

Methodological Notes ............................... 126 

Glossary . ......................................... 128 

Conversion Tables .................................. 132 

List of Abbreviations ................................ 133 

Endnotes ......................................... 134 

Report Citation 

REN21. 2013. Renewables 2013 Global Status Report 

(Paris: REN21 Secretariat). 

ISBN 978-3-9815934-0-2 

4

TABLES 

TABLE 1 Estimated Direct and Indirect Jobs in 

Renewable Energy Worldwide, by Industry ..... 53 

TABLE 2 Status of Renewable Energy Technologies: 

Characteristics and Costs ................... 54 

TABLE 3 Renewable Energy Support Policies .......... 76 

FIGURES 

FIGURE 1 Estimated Renewable Energy Share of 

Global Final Energy Consumption, 2011 ....... 19 

FIGURE 2 Average Annual Growth Rates of Renewable 

Energy Capacity and Biofuels Production, 

End-2007–2012 ........................... 20 

FIGURE 3 Estimated Renewable Energy Share of 

Global Electricity Production, End-2012 ....... 21 

FIGURE 4 Renewable Power Capacities in World, 

EU-27, BRICS, and Top Six Countries, 2012 .... 22 

FIGURE 5 Biomass-to-Energy Pathways ................ 27 

FIGURE 6 Wood Pellet Global Production, 

by Country or Region, 2000–2012 ........... 28 

FIGURE 7 Bio-power Generation of Top 20 Countries, 

Annual Average, 2010–2012 ................ 30 

FIGURE 8 Ethanol and Biodiesel Global Production, 

2000–2012 .............................. 30 

FIGURE 9 Hydropower Global Capacity, 

Shares of Top Five Countries, 2012 ........... 36 

FIGURE 10 Hydropower Global Net Capacity Additions, 

Shares of Top Five Countries, 2012 ........... 36 

FIGURE 11 Solar PV Global Capacity, 1995–2012 ........ 41 

FIGURE 12 Solar PV Global Capacity, 

Shares of Top 10 Countries, 2012 ............ 41 

FIGURE 13 Market Shares of Top 15 

Solar PV Module Manufacturers, 2012 ........ 41 

FIGURE 14 Concentrating Solar Thermal Power 

Global Capacity, 1984–2012 ................ 45 

FIGURE 15 Solar Water Heating Global Capacity 

Additions, Shares of Top 12 Countries, 2011 ... 47 

FIGURE 16 Solar Water Heating Global Capacity, 

Shares of Top 12 Countries, 2011 ............ 47 

FIGURE 17 Solar Water Heating Global Capacity, 

2000–2012 .............................. 47 

FIGURE 18 Wind Power Global Capacity, 1996–2012 ..... 50 

FIGURE 19 Wind Power Capacity and Additions, 

Top 10 Countries, 2012 ..................... 50 

FIGURE 20 Market Shares of Top 10 Wind Turbine 

Manufacturers, 2012 ....................... 50 

FIGURE 21 Global New Investment in 

Renewable Energy, 2004–2012 ............. 57 


Renewable Energy by Region, 2004–2012 .... 58 


Renewable Energy by Technology, 

Developed and Developing Countries, 2012 .... 61 

FIGURE 24 EU Renewable Shares of Final Energy, 

2005 and 2011, with Targets for 2020 ......... 66 

FIGURE 25 Countries with Renewable Energy Policies, 

Early 2013 ................................ 79 

FIGURE 26 Countries with Renewable Energy Policies, 

2005 .................................... 79 

SIDEBARS 

SIDEBAR 1 The REN21 Renewables Global Futures Report. 23 

SIDEBAR 2 Regional Spotlight: Africa ................... 24 

SIDEBAR 3 Sustainability Spotlight: Hydropower ......... 37 

SIDEBAR 4 Jobs in Renewable Energy .................. 53 

SIDEBAR 5 Investment Types and Terminology ........... 60 

SIDEBAR 6 Current Status of Global Energy Subsidies ..... 67 

SIDEBAR 7 Linking Renewable Energy and 

Energy Efficiency .......................... 71 

SIDEBAR 8 Innovating Energy Systems: 

Mini-Grid Policy Toolkit ..................... 82 

REFERENCE TABLES 

TABLE R1 Global Renewable Energy Capacity and 

Biofuel Production, 2012 ................... 93 

TABLE R2 Renewable Electric Power Global Capacity, 

Top Regions and Countries, 2012 ............ 94 

TABLE R3 Wood Pellet Global Trade, 2012 .............. 95 

TABLE R4 Biofuels Global Production, 

Top 15 Countries and EU-27, 2012 ........... 96 

TABLE R5 Solar PV Global Capacity and Additions, 

Top 10 Countries, 2012 ..................... 97 

TABLE R6 Concentrating Solar Thermal Power (CSP) 

Global Capacity and Additions, 2012. . . . . . . . . . 98 

TABLE R7 Solar Water Heating Global Capacity and 

Additions, Top 12 Countries, 2011 ............ 99 

TABLE R8 Wind Power Global Capacity and Additions, 

Top 10 Countries, 2012 ..................... 100 

TABLE R9 Global Trends in Renewable Energy 

Investment, 2004–2012 .................... 101 

TABLE R10 Share of Primary and Final Energy from 

Renewables, Existing in 2010/2011 and Targets. 102 

TABLE R11 Share of Electricity Production from 

Renewables, Existing in 2011 and Targets ..... 106 

TABLE R12 Other Renewable Energy Targets ............. 108 

TABLE R13 Cumulative Number of Countries/States/ 

Provinces Enacting Feed-in Policies .......... 116 

TABLE R14 Cumulative Number of Countries/States/ 

Provinces Enacting RPS/Quota Policies ....... 117 

TABLE R15 National and State/Provincial 

Biofuel Blend Mandates, 2012 ............... 118 

TABLE R16 City and Local Renewable Energy Policies: 

Selected Examples ........................ 119 

TABLE R17 Electricity Access by Region and Country ...... 122 

TABLE R18 Population Relying on Traditional Biomass 

for Cooking ............................... 125 

Renewables 2013 Global Status Report 5

RENEWABLE ENERGY POLICY 

NETWORK FOR THE 21 st CENTURY 

REN21 is the global renewable energy policy multi-stakeholder network 

that connects a wide range of key actors including governments, international 

organisations, industry associations, science and academia, and civil society, 

with the aim of facilitating knowledge exchange, policy development, and 

joint action towards a rapid global transition to renewable energy. 

REN21 promotes renewable energy in both industrialised and developing 

countries that are driven by the need to mitigate climate change while advancing 

energy security, economic and social development, and poverty alleviation. 

Science & 

Academia 

Civil Society 

R E N 

2 1 N e t w o r k 

International 

Organisations 

Industry 

Associations 

R E N 

2 1 

S e c r 

i a t 

e t a r 

Governments 

www.ren21.net 

6

REN21 Flagship Products and Activities 

Renewables Global Status Report 

www.ren21.net/gsr 

Renewables Interactive 

Map 

www.map.ren21.net 

Renewables Global Regional Status Reports Global Status Report 

Futures Report 

on Local Renewable 

www.ren21.net/gfr 

Energy Policies 

Facilitation of IRECs REN21+: REN21’s reegle 

Global Web Platform 

Clean Energy Info Portal 

www.ren21plus.ren21.net 

www.reegle.info 

Dehli International 

Renewable Energy Conference 

27 to 29 October 2010 

India Expo Centre & Mart, Greater Noida (National Capital Region of Dehli, India) 

7

ACKNOWLEDGEMENTS 

This report was commissioned by REN21 and produced in 

collaboration with a global network of research partners. 

Financing was provided by the German Federal Ministry for 

Economic Cooperation and Development (BMZ), the German 

Federal Ministry for the Environment, Nature Protection and 

Nuclear Safety (BMU), and the Ministry of Foreign Affairs of 

the United Arab Emirates. A large share of the research for this 

report was conducted on a voluntary basis. 

RESEARCH DIRECTOR AND LEAD AUTHOR 

Janet L. Sawin 

(Sunna Research and Worldwatch Institute) 

SECTION AUTHORS 

Kanika Chawla (REN21 Secretariat) 

Rainer Hinrichs-Rahlwes, Feature 

(German Renewable Energies Federation – BEE; 

European Renewable Energy Council – EREC) 

Ernesto Macías Galán (Alliance for Rural Electrification) 

Angus McCrone (Bloomberg New Energy Finance) 

Evan Musolino (Worldwatch Institute) 

Lily Riahi (REN21 Secretariat) 

Janet L. Sawin 

(Sunna Research and Worldwatch Institute) 

Ralph Sims (Massey University) 

Virginia Sonntag-O’Brien (Frankfurt School – UNEP 

Centre for Climate & Sustainable Energy Finance) 

Freyr Sverrisson (Sunna Research) 

SPECIAL ADVISOR 

Ralph Sims (Massey University) 

REN21 PROJECT MANAGEMENT 

Rana Adib (REN21 Secretariat) 

Jonathan Skeen (REN21 Secretariat) 

RESEARCH SUPPORT AND 

SUPPLEMENTARY AUTHORSHIP 

Sandra Chavez (REN21 Secretariat) 

Jonathan Skeen (REN21 Secretariat) 

The UN Secretary-General’s initiative Sustainable Energy 

for All aims at mobilising global action to achieve universal 

access to modern energy services, improved rates of energy 

efficiency, and expanded use of renewable energy sources by 

2030. REN21’s Renewables 2013 Global Status Report includes 

a section on rural renewable energy, based on input from local 

experts working around the world. The report highlights how 

renewables are providing access to energy for millions of people 

and contributing to a better quality of life through the use of 

modern cooking, heating/cooling, and electricity technologies. 

LEAD AUTHOR EMERITUS 

Eric Martinot (Institute for Sustainable Energy Policies) 

EDITING, DESIGN, AND LAYOUT 

Lisa Mastny, editor (Worldwatch Institute) 

weeks.de Werbeagentur GmbH, design 

PRODUCTION 

REN21 Secretariat, Paris, France 

8

■■Lead Regional and Country Researchers 

Africa: 

Jonathan Skeen (Emergent Energy) 

Central and Eastern Europe: 

Ulrike Radosch (Austrian Energy Agency, enerCEE) 

Latin America and Caribbean: 

Gonzalo Bravo (Fundación Bariloche) 

Middle East and Northern Africa: 

Amel Bida, Maged Mahmoud (RCREEE) 

South East Asia and Pacific: 

Benjamin Sovacool (Vermont Law School) 

Sub-Saharan Africa: 

Mark Hankins (African Solar Designs) 

West Africa: 

Eder Semedo, David Villar (ECREEE) 

Western Europe: 

Jan Burck, Lukas Hermwille (Germanwatch) 

Argentina: 

Alejandro Garcia (GIZ) 

Brazil: 

Renata Grisoli (CENBIO, IEE, USP); 

Henrique Magalhaes (Ministério de Minas e Energia) 

Canada: 

Tom Du (CanREA); 


Chile: 

Roberto Román L. (Universidad de Chile) 

China: 

Frank Haugwitz (Asia Europe Clean Energy (Solar) Advisory) 

Colombia: 

Edgar Cruz (Energy Climate and Sustainability Solutions) 

Fiji: 

Atul Raturi (University of the South Pacific) 

Germany: 

Peter Bickel, Thomas Nieder (ZSW) 

India: 

Mohit Anand (Bridge to India); 

Debajit Palit (TERI) 

Italy: 

Noemi Magnanini (GSE) 

Japan: 

Hironao Matsubara (ISEP) 

Kazakhstan: 

Jan Burck, Lukas Hermwille (Germanwatch) 

Lithuania: 

Inga Valuntiene (COWI Lietuva); 

Edgar Cruz (Energy Climate and Sustainability Solutions) 

Mexico: 

Odón de Buen (ENTE SC) 

Micronesia: 

Emanuele Taibi (Secretariat of the Pacific Community) 

Myanmar: 

Amalie Conchelle Obusan (Greenpeace Southeast Asia) 

Nigeria: 

Godfrey Ogbemudia (CREDC) 

Oman: 

Ali Al-Resheidi (Public Authority for Electricity and Water) 

Panama: 

Rebeca Ramirez (Secretaría Nacional de Energía) 

Philippines: 

Fernán Izquierdo (Gamesa); Hendrik Meller (GIZ) 

Portugal: 

Lara Ferreira (APREN); Luisa Silverio (DGEG) 

Russian Federation: 

Sanghoon Lee (Korean Society for New and Renewable Energy) 

Singapore: 

Hiang Kwee Ho (National University of Singapore) 

South Korea: 

Sanghoon Lee (Korean Society for New and Renewable 

Energy); Kwanghee Yeom (Freie Universität Berlin/ 

Friends of the Earth Korea) 

Spain: 

Diana Lopez (IDAE); Pablo Del Río, Cristina Peñasco (IPP-CSIC) 

Sweden: 

Max Ahman (Lund Univeristy) 

Thailand: 

Sopitsuda Tongsopit (Energy Research Institute, Chulalongkorn 

University) 

Trinidad and Tobago: 

Katie Auth (Worldwatch Institute) 

United Arab Emirates: 

Dane McQuee (Ministry of Foreign Affairs) 

United States: 


Uruguay: 

Pablo Caldeiro, Ramón Mendez (Ministry of Industry) 


ACKNOWLEDGEMENTS (CONTINUED) 

■■Lead Topical Contributors 

Bioenergy 

Anselm Eisentraut (IEA); Helena Chum (NREL); 

Sribas Bhattacharya (IISWBA); Zuzana Dobrotkova (IRENA); 

Alessandro Flammini, Florian Steierer (FAO); 

Patrick Lamers (Ecofys); Andrew Lang (World Bioenergy 

Association); Agata Prządka (European Biogas Association); 

Daniela Thrän (UFZ); Michael Wild (Wild&Partner LLC) 

Concentrating Solar Thermal Power 

Elena Dufour (ESTELA); Eduardo Garcia Iglesias 

(Protermosolar); Fredrick Morse, Elisa Prieto Casaña, 

Miguel Yañez Barnuevo (Abengoa Solar) 

Energy Efficiency and Renewable Energy 

Amit Bando, Sung Moon Jung, Thibaud Voïta (IPEEC) 

Geothermal Energy 

Karl Gawell, Benjamin Matek (GEA); Marietta Sander (IGA) 

■■Lead Rural Energy Contributors 

Jiwan Acharya (ADB); Gabriela Azuela (World Bank); 

Gonzalo Bravo (Fundación Bariloche); Akanksha Chaurey 

(IT Power); Ana Coll (ILUMÉXICO); José Jaime De Domingo 

Angulo (ISOFOTON); Rodd Eddy (World Bank); Koffi Ekouevi 

(World Bank); Tobias Engelmeier (Bridge to India); 

Yasemin Erboy (UN Foundation); Gunjan Gautam (World Bank); 

Mariana Gonzalez (SSIC); James Kakeeto (Creation Energy); 

Johan de Leeuw (Wind Energy Solutions); Miquelina Menezes 

(FUNAE); Carlos Miro (ARE); Usman Muhammad (CREACC – 

Nigeria); Debajit Palit (TERI); Mary Roach (GSMA); 

Gerardo Ruiz (EERES); Morisset Saint-Preux (L’Institut 

Technique de la Côte-Sud); Tripta Singh (UN Foundation); 

Xavier Vallve (Trama Tecno Ambiental); Arnaldo Vieira de 

Carvalho (IDB); David Vilar (ECREEE); Manuel Wiechers 

(ILUMÉXICO). 

Green Purchasing and Labeling 

Joß Bracker (Öko-Institut); Jenny Heeter (NREL) 

Hydropower/ Ocean Energy 

Simon Smith, Richard Taylor, Tracy Lane (IHA); 

Pilar Ocón, Christine van Oldeneel (HEA); 

Sean George, Gema San Bruno (EU-OEA); 

Magdalena Muir (Johns Hopkins University) 

Hydropower Sustainability 

Cameron Ironside, Tracy Lane, Simon Smith, 

Richard Taylor (IHA); Peter Bossard, Zachary Hurwitz 

(International Rivers); Tormod Andre Schei (Statkraft) 

Jobs 

Rabia Ferroukhi, Hugo Lucas (IRENA); 

Michael Renner (Worldwatch Institute) 

Mini-Grids 

Mark Hankins (African Solar Designs) 

Renewable Energy Costs 

Michael Taylor (IRENA) 

Solar General 

Jennifer McIntosh, Paulette Middleton, David Renné (ISES) 

Solar PV 

Gaëtan Masson (EPIA, IEA-PVPS); Solar Analyst Team 

(GTM Research); Travis Bradford (Prometheus Institute); 

Denis Lenardic (pvresources.com) 

Solar Thermal Heating and Cooling 

Franz Mauthner, Werner Weiss (AEE-INTEC); 

Pedro Dias (ESTIF); Bärbel Epp (Solrico) 

Subsidies 

Shruti Shukla (GWEC) 

Wind Power 

Steve Sawyer, Shruti Shukla, Liming Qiao (GWEC); 

Aris Karcanias, Birger Madsen, Feng Zhao (Navigant’s BTM 

Consult); Stefan Gsänger (WWEA); Shi Pengfei (CWEA) 

10

■■Reviewers and other Contributors 

Yasmina Abdelilah (IEA); Emmanuel Ackom (UNEP Risø 

Centre/GNESD); Ali Adil (ICLEI); Luana Alves de Melo (Ministry 

of External Relations, Brazil); Lars Andersen (GIZ); Kathleen 

Araujo (MIT); Yunus Arikan (ICLEI); Morgan Bazilian (NREL); 

Emmanuel Branche (EDF); Adam Brown (IEA); Suani Coelho 

(CENBIO); Benjamin Dannemann (Agentur für Erneuerbare 

Energien); Abhijeet Deshpande (UN ESCAP); Jens Drillisch 

(KfW); Hatem Elrefaei (Ministry of Communications and IT 

Egypt); Javier Escobar (USP); Rodrigo Escobar (Pontificia 

Universidad Católica de Chile); Diego Faria (Ministry of 

Mines and Energy, Brazil); Matthias Fawer (Bank Sarasin); 

Uwe Fritsche (IINAS); Shota Furuya (ISEP); Jacopo Giuntoli 

(JRC Institute for Energy); Chris Greacen (Palang Thai); 

Kate Greer (Clean Energy Council); Alexander Haack (GIZ); 

Andreas Häberle (PSE); Diala Hawila (IRENA); Martin Hullin 

(REN21 Secretariat); Uli Jakob (Green Chiller Verband für 

Sorptionskälte); Wim Jonker Klunne (CSIR); Anthony J. Jude 

(ADB); Izumi Kaizuka (RTS Corporation, IEA-PVPS); James 

Kakeeto (Creation Energy Limited); Nicole Klas (Imperial 

College London); Andrew Kruse (Endurance Wind Power); 

Arun Kumar (Indian Institute of Technology Roorkee); Marie 

Latour (EPIA); Anna Leidreiter (World Future Council); Philippe 

Lempp (GIZ); Martin Lugmayr (ECREEE); Henrique Magalhaes 

(Government of Brazil); Chris Malins (ICCT); Lucius Mayer-Tasch 

(GIZ); Emanuela Menichetti (OME); Alan Miller (IFC); Catherine 

Mitchell (Exeter University); Daniel Mugnier (TECSOL); 

Michael Mulcahy (Green Cape); Julia Münch (Fachverband 

Biogas); Alex Njuguna (GEF); Binu Parthan (Sustainable 

Energy Associates); Jean-Daniel Pitteloud (WWEA); Magdolna 

Prantner (Wuppertal Institut); Caspar Priesemann (GIZ); 

Robert Rapier (Merica International); Atul Raturi (University 

of the South Pacific); Kilian Reiche (iiDevelopment); Wilson 

Rickerson (Meister Consultants Group); Daniel Rowe (CSIRO); 

Munof van Rudloff (CHA); Stefan Salow (GIZ); E.V.R. Sastry 

(MNRE, India); Abdulaziz Al-Shalabi (OME); Rafael Senga 

(WWF International); Scott Sklar (Stella Group); Mauricio Solano 

Peralta (Trama TecnoAmbiental); Paul Suding (GIZ, IADB); K.A. 

Suman (CPPCIF); Sven Teske (Greenpeace International); Jan 

Tarras-Wahlberg (Municipality of Skellefteå); Yoshinori Ueda 

(International Committee of the JWPA and JWEA); Frank van 

der Vleuten (Ministry of Foreign Affairs, Netherlands); Maryke 

van Staden (ICLEI); Salvatore Vinci (IRENA); Alex Waithera 

(World Bank Group, GEF); Michael Waldron (IEA); Angelika 

Wasielke (GIZ); Mina Weydahl (UNDP); Laura E. Williamson 

(REN21 Secretariat); William Wills (Federal University of Rio 

de Janeiro) 

The Global Trends in Renewable Energy Investment 

report (GTR), formerly Global Trends in Sustainable 

Energy Investment, was first published by the Frankfurt 

School – UNEP Collaborating Centre for Climate & 

Sustainable Energy Finance in 2011. This annual report 

was produced previously (starting in 2007) under UNEP’s 

Sustainable Energy Finance Initiative (SEFI). 

It grew out of efforts to track and publish comprehensive 

information about international investments in renewable 

energy according to type of economy, technology, and 

investment. 

The GTR is produced jointly with Bloomberg New Energy 

Finance and is the sister publication to the REN21 

Renewables Global Status Report (GSR). The latest edition 

was released in June 2013 and is available for download 

at www.fs-unep- centre.org. 


ES 

Source: NASA

EXECUTIVE SUMMARY 

Renewable energy markets, industries, and policy frameworks 

have evolved rapidly in recent years. The Renewables Global 

Status Report provides a comprehensive and timely overview 

of renewable energy market, industry, investment, and policy 

developments worldwide. It relies on the most recent data 

available, provided by a network of more than 500 contributors 

and researchers from around the world, all of which is brought 

together by a multi-disciplinary authoring team. The report 

covers recent developments, current status, and key trends; by 

design, it does not provide analysis or forecasts. i 

■■Continued Renewable Energy Growth 

Global demand for renewable energy continued to rise during 

2011 and 2012, supplying an estimated 19% of global final 

energy consumption in 2011 (the latest year for which data are 

available), with a little less than half from traditional biomass. ii 

Useful heat energy from modern renewable sources accounted 

for an estimated 4.1% of total final energy use; hydropower 

made up about 3.7%; and an estimated 1.9% was provided 

by power from wind, solar, geothermal, and biomass, and by 

biofuels. 

Total renewable power capacity worldwide exceeded 1,470 

GW in 2012, up about 8.5% from 2011. Hydropower rose 3% 

to an estimated 990 GW, while other renewables grew 21.5% 

to exceed 480 GW. Globally, wind power accounted for about 

39% of renewable power capacity added in 2012, followed by 

hydropower and solar PV, each accounting for approximately 

26%. 

Renewables made up just over half of total net additions to 

electric generating capacity from all sources in 2012. By year’s 

end, they comprised more than 26% of global generating 

capacity and supplied an estimated 21.7% of global electricity, 

with 16.5% of electricity provided by hydropower. Industrial, 

commercial, and residential consumers are increasingly 

becoming producers of renewable power in a growing number 

of countries. 

Demand continued to rise in the heating and cooling sector, 

which offers an immense, yet mostly untapped, potential for 

renewable energy deployment. Already, heat from modern 

biomass, solar, and geothermal sources represents a significant 

portion of the energy derived from renewables, and the sector 

is evolving slowly as countries begin to enact support policies. 

Trends in the sector include the use of larger systems, increasing 

use of combined heat and power (CHP), the feeding of 

renewable heat and cooling into district schemes, and the 

growing use of modern renewable heat for industrial purposes. 

After years of rapid growth, biodiesel production continued to 

expand in 2012 but at a much slower rate; fuel ethanol production 

peaked in 2010 and has since declined. Small but growing 

quantities of gaseous biofuels are being used to fuel vehicles, 

and there are limited but increasing initiatives to link electric 

transport systems with renewable energy. 

Most renewable energy technologies continued to see 

expansion in manufacturing and global demand during 2012. 

However, uncertain policy environments and declining policy 

support affected investment climates in a number of established 

markets, slowing momentum in Europe, China, and India. 

Solar PV and onshore wind power experienced continued 

price reductions due to economies of scale and technology 

advances, but also due to a production surplus of modules and 

turbines. Combined with the international economic crisis and 

ongoing tensions in international trade, these developments 

have created new challenges for some renewable industries, 

and particularly for equipment manufacturers, leading to 

industry consolidation. However, they also have opened up new 

opportunities and pushed companies to explore new markets. 

Renewables are becoming more affordable for a broader range 

of consumers in developed and developing countries alike. 

Renewables are picking up speed across Asia, Latin America, 

the Middle East, and Africa, with new investment in all 

technologies. The Middle East and North Africa (MENA) region 

and South Africa, in particular, witnessed the launch of ambitious 

new targets in 2012, as well as the emergence of policy 

frameworks and renewables deployment. Markets, manufacturing, 

and investment shifted increasingly towards developing 

countries during 2012. 

The top countries for renewable power capacity at year’s end 

were China, the United States, Brazil, Canada, and Germany; 

the top countries for non-hydro capacity were China, the United 

States, and Germany, followed by Spain, Italy, and India. By 

region, the BRICS nations accounted for 36% of total global 

renewable power capacity and almost 27% of non-hydro renewable 

capacity. The EU had the most non-hydro capacity at the 

end of 2012, with approximately 44% of the global total. 

Renewables represent a rapidly rising share of energy supply in 

a growing number of countries and regions: 

◾◾ 

In China, wind power generation increased more than 

generation from coal and passed nuclear power output for 

the first time. 

◾◾ 

In the European Union, renewables accounted for almost 

70% of additions to electric capacity in 2012, mostly from 

solar PV and wind power. In 2011 (the latest year for which 

data are available), renewables met 20.6% of the region’s 

electricity consumption and 13.4% of gross final energy 

consumption. 

◾◾ 

In Germany, renewables accounted for 22.9% of electricity 

consumption (up from 20.5% in 2011), 10.4% of national 

heat use, and 12.6% of total final energy demand. 

◾ ◾ The United States added more capacity from wind power 

than any other technology, and all renewables made up 

about half of total electric capacity additions during the year. 

i REN21’s recently published Global Futures Report shows the range of credible possibilities for renewable energy futures, based on interviews with over 170 

leading experts from around the world and the projections of 50 recently published scenarios. It can be downloaded from www.ren21.net/gfr. 

ii Note that there is debate about the sustainability of traditional biomass, and whether it should be considered renewable, or renewable only if it comes from a 

sustainable source. 


Executive Summary 

SELECTED INDICATORS 

2010 2011 2012 

Investment in new renewable capacity (annual) 1 billion USD 227 279 244 

Renewable power capacity (total, not including hydro) GW 315 395 480 

Renewable power capacity (total, including hydro) GW 1,250 1,355 1,470 

Hydropower capacity (total) 2 GW 935 960 990 

Bio-power generation TWh 313 335 350 

Solar PV capacity (total) GW 40 71 100 

Concentrating solar thermal power (total) GW 1.1 1.6 2.5 

Wind power capacity (total) GW 198 238 283 

Solar hot water capacity (total) 3 GW th 

195 223 255 

Ethanol production (annual) billion litres 85.0 84.2 83.1 

Biodiesel production (annual) billion litres 18.5 22.4 22.5 

Countries with policy targets # 109 118 138 

States/provinces/countries with feed-in policies # 88 94 99 

States/provinces/countries with RPS/quota policies # 72 74 76 

States/provinces/countries with biofuels mandates 4 # 71 72 76 

1 

Investment data are from Bloomberg New Energy Finance and include all biomass, geothermal, and wind generation projects of more than 1 MW; all 

hydro projects of between 1 and 50 MW; all solar power projects; all ocean energy projects; and all biofuel projects with an annual production capacity 

of 1 million litres or more. 

2 

Hydropower data do not include pumped storage capacity. For more information, see Methodological Notes, page 126. 

3 

Solar hot water capacity data include glazed water collectors only. 

4 

Biofuel policies include policies listed both under the biofuels obligation/mandate column in Table 3 (Renewable Energy Support Policies) and in 

Reference Table R15 (National and State/Provincial Biofuel Blend Mandates). 

Note: Numbers are rounded. Renewable power capacity (including and not including hydropower) and hydropower capacity data are rounded to nearest 

5 GW; other statistics are rounded to nearest whole number except for very small numbers and biofuels, which are rounded to one decimal point. 

◾◾ 

Wind and solar power are achieving high levels of penetration 

in countries like Denmark and Italy, which in 2012 generated 

30% of electricity with wind and 5.6% with solar PV, 

respectively. 

As their shares of variable wind and solar power increase, a number 

of countries (including Denmark, Germany, and Spain) have 

begun to enact policies and measures to successfully transform 

their energy systems to accommodate even larger shares. 

Impacts of all of these developments on jobs in the renewable 

energy sector have varied by country and technology, but, 

globally, the number of people working in renewable industries 

has continued to rise. An estimated 5.7 million people worldwide 

work directly or indirectly in the sector. 

■■An Evolving Policy Landscape 

At least 138 countries had renewable energy targets by the end 

of 2012. As of early 2013, renewable energy support policies 

were identified in 127 countries, more than two-thirds of which 

are developing countries or emerging economies. The rate of 

adoption of new policies and targets has remained slow relative 

to the early to mid 2000s. As the sector has matured, revisions 

to existing policies have become increasingly common. 

14

In response to rapidly changing market conditions for renewable 

technologies, tight national budgets, and the broader 

impacts of the global economic crisis in 2012 and early 2013, 

some countries undertook extensive revisions to existing laws, 

some of which were imposed retroactively. Others increased 

support for renewables, and several countries around the world 

adopted ambitious new targets. 

Most policies to support renewable energy target the power 

sector, with feed-in tariffs (FITs) and renewable portfolio standards 

(RPSs) used most frequently. During 2012, FIT policies 

were enacted in five countries, all in Africa and the Middle East; 

the majority of FIT-related changes involved reduced support. 

New RPS policies were enacted in two countries. An increasing 

number of countries turned to public competitive bidding, or 

tendering, to deploy renewables. 

In the heating and cooling sector, promotion policies and targets 

continued to be enacted at a slower rate than in the power 

sector, although their adoption is increasing steadily. As of early 

2013, 20 countries had specific renewable heating targets in 

place, while at least 19 countries and states mandated the use 

of renewable heat technologies. Renewable heating and cooling 

are also supported through building codes and other measures. 

Biofuel blend mandates were identified at the national level in 

27 countries and in 27 states/provinces. Despite increasing 

pressure in major markets such as Europe and the United 

States, due to growing debate over the overall sustainability of 

first generation biofuels, regulatory policies promoting the use 

of biofuels existed in at least 49 countries as of early 2013. 

Thousands of cities and towns around the world have developed 

their own plans and policies to advance renewable 

energy, and momentum accelerated in 2012. To achieve ambitious 

targets, local governments adopted a range of measures, 

including FITs or technology-specific capacity targets; fiscal 

incentives to support renewable energy deployment; and new 

building codes and standards, including solar heat mandates. 

Others developed renewable district heating and cooling 

systems; promoted the use of renewably powered electric 

transport; formed consortia to fund projects; or advanced 

advocacy and information sharing. 

Several cities are working with their national governments to 

promote renewable energy, while others have begun to organise 

from the bottom up. In Europe, 1,116 new cities and towns 

joined the Covenant of Mayors in 2012, committing to a 20% 

CO 2 

reduction target and to plans for climate mitigation, energy 

efficiency, and renewable energy. 

■■Investment Trends 

Global new investment in renewable power and fuels was USD 

244 billion in 2012, down 12% from the previous year’s record. 

The total was still the second highest ever and 8% above 

the 2010 level. If the unreported investments in hydropower 

projects larger than 50 MW and in solar hot water collectors are 

included, total new investment in renewable energy exceeded 

USD 285 billion. 

The decline in investment—after several years of growth— 

resulted from uncertainty about support policies in major 

developed economies, especially in Europe (down 36%) and 

the United States (down 35%). Nonetheless, considering only 

net additions to electric generating capacity (excluding replacement 

plants) in 2012, global investment in renewable power 

was ahead of fossil fuels for the third consecutive year. 

The year 2012 saw the most dramatic shift yet in the balance of 

investment activity between developed and developing economies. 

Outlays in developing countries reached USD 112 billion, 

representing 46% of the world total; this was up from 34% in 

2011, and continued an unbroken eight-year growth trend. By 

contrast, investment in developed economies fell 29% to USD 

132 billion, the lowest level since 2009. The shift was driven by 

reductions in subsidies for solar and wind project development 

in Europe and the United States; increased investor interest 

in emerging markets with rising power demand and attractive 

renewable energy resources; and falling technology costs of 

wind and solar PV. Europe and China accounted for 60% of 

global investment in 2012. 

Solar power was the leading sector by far in terms of money 

committed in 2012, receiving 57% of total new investment in 

renewable energy (96% of which went to solar PV). Even so, the 

USD 140.4 billion for solar was down 11% from 2011 levels, due 

to a slump in financing of CSP projects in Spain and the United 

States, as well as to sharply lower PV system prices. Solar was 

followed by wind power (USD 80.3 billion) and hydropower 

projects larger than 50 MW (estimated at USD 33 billion). 

■■Rural Renewable Energy 

The year 2012 brought improved access to modern energy 

services through the use of renewables. Rural use of renewable 

electricity has increased with greater affordability, improved 

knowledge about local renewable resources, and more sophisticated 

technology applications. Attention to mini-grids has 

risen in parallel with price reductions in solar, wind, inverter, 

gasification, and metering technologies. 

Technological progress also advanced the use of renewables in 

the rural heating and cooking sectors. Rural renewable energy 

markets show significant diversity, with the levels of electrification, 

access to clean cookstoves, financing models, actors, and 

support policies varying greatly among countries and regions. 

Government-driven electrification and grid extension programmes 

are still being adopted across the developing world. 

However, the last two decades have seen increasing private 

sector involvement in deployment of renewables in remote and 

rural areas, spurred by new business models and increasing 

recognition that low-income customers can offer fast-growing 

markets. 

Policies to provide energy access through renewable energy are 

being integrated increasingly into broader rural development 

plans. Brazil, China, India, and South Africa are in the lead in 

the development of large-scale programmes that address the 

dual challenges of energy access and sustainability. However, 

for energy access targets to be met, institutional, financial, 

and legal mechanisms must be created and strengthened to 

support large-scale renewable energy deployment. The UN 

General Assembly’s ‘Energy Access for All’ objective of universal 

access to modern energy by 2030 will require an annual 

investment of an estimated USD 36-41 billion. 


Executive Summary 

■■Market and Industry Highlights 

And Ongoing Trends 

BIOMASS FOR HEAT, POWER, AND TRANSPORT. Use of 

biomass in the heat, power, and transport sectors increased 

2–3% to approximately 55 EJ. Heating accounted for the vast 

majority of biomass use, including traditional biomass, with 

modern biomass heat capacity rising about 3 GW th 

to an estimated 

293 GW th 

. Bio-power capacity was up 12% to nearly 83 

GW, with notable increases in some BRICS countries, and about 

350 TWh of electricity was generated during the year. Demand 

for modern biomass is driving increased international trade, 

particularly for biofuels and wood pellets. Global production 

and transport of wood pellets exceeded 22 million tonnes, and 

about 8.2 million tonnes of pellets were traded internationally. 

Liquid biofuels provided about 3.4% of global road transport 

fuels, with small but increasing use by the aviation and marine 

sectors. Global production of fuel ethanol was down about 

1.3% by volume from 2011, to 83.1 billion litres, while biodiesel 

production increased slightly, reaching 22.5 billion litres. New 

ethanol and biodiesel production facilities opened, although 

many ethanol plants operated below capacity. 

GEOTHERMAL ENERGY. Geothermal resources provided an 

estimated 805 PJ (223 TWh) of renewable energy in 2012, 

delivering two-thirds as direct heat and the remainder as 

electricity. The use of ground-source heat pumps is growing 

rapidly and reached an estimated 50 GW th 

of capacity in 2012. 

At least 78 countries tap geothermal resources for direct heat, 

while two-thirds of global capacity is located in the United 

States, China, Sweden, Germany, and Japan. Geothermal 

electric generating capacity grew by an estimated 300 MW 

during 2012, bringing the global total to 11.7 GW and generating 

at least 72 TWh. 

HYDROPOWER. An estimated 30 GW of new hydropower 

capacity came on line in 2012, increasing global installed 

capacity by 3% to an estimated 990 GW. i Hydropower generated 

an estimated 3,700 TWh of electricity during 2012. Once 

again, China led in terms of capacity additions (15.5 GW), 

with the bulk of other installations in Turkey, Brazil, Vietnam, 

and Russia. Joint-venture business models involving local and 

international partnerships are becoming increasingly prominent 

as the size of projects and the capacity of hydropower technologies 

increase. 

OCEAN ENERGY. Commercial ocean energy capacity (mostly 

tidal power facilities) remained at about 527 MW at year’s end, 

with little added in 2012. Small-scale projects were deployed 

in the United States and Portugal. Governments and regional 

authorities continued to support ocean energy research and 

development, while major power corporations increased their 

presence in the sector, which is seeing measured but steady 

progress. 

SOLAR PV. Total global operating capacity of solar PV reached 

the 100 GW milestone, led by Europe, with significant additions 

in Asia late in the year. Driven by falling prices, PV is expanding 

to new markets, from Africa and the MENA region to Asia to 

Latin America. Interest in community-owned and self-generation 

systems continued to grow in 2012, while the number and 

scale of large PV projects also increased. Cell and module 

manufacturers struggled as extreme competition and decreases 

in prices and margins spurred more industry consolidation, and 

several Chinese, European, and U.S. manufacturers went out 

of business. Thin film’s share of global PV production declined 

further, with production down 15% to 4.1 GW. 

CONCENTRATING SOLAR THERMAL POWER (CSP). Total 

global CSP capacity increased more than 60% to about 

2,550 MW. Most of this capacity was added in Spain, home to 

more than three-fourths of the world’s CSP capacity. No new 

capacity came on line in the United States, but about 1,300 

MW was under construction by year’s end. Elsewhere, more 

than 100 MW of capacity was operating, mostly in North Africa. 

The industry is expanding into Australia, Chile, China, India, 

the MENA region, and South Africa. Falling PV and natural gas 

prices, the global economic downturn, and policy changes 

in Spain all created uncertainty for CSP manufacturers and 

developers. 

SOLAR THERMAL HEATING AND COOLING. By the end of 

2012, global solar thermal capacity reached an estimated 282 

GW th 

for all collector types, with the capacity of glazed water 

collectors reaching an estimated 255 GW th 

. China and Europe 

account for about 90% of the world market (all types) and the 

vast majority of total capacity. Solar space heating and cooling 

are gaining ground, as are solar thermal district heating, solar 

cooling, and process heat systems. The industry continued 

to face challenges, particularly in Europe, and was marked by 

acquisitions and mergers among leading players, with rapid 

consolidation continuing in China. Automation of manufacturing 

processes increased in 2012, with innovation spanning from 

adhesives to materials and beyond. 

WIND POWER. In another record year for wind power, at least 

44 countries added a combined 45 GW of capacity (more than 

any other renewable technology), increasing the global total 

by 19% to 283 GW. The United States was the leading market, 

but China remains the leader for total installed capacity. Wind 

power is expanding to new markets, aided by falling prices. 

Almost 1.3 GW of capacity was added offshore (mostly in 

northern Europe), bringing the total to 5.4 GW in 13 countries. 

The wind industry has been challenged by downward pressure 

on prices, combined with increased competition among turbine 

manufacturers, competition with low-cost gas in some markets, 

and reductions in policy support driven by economic austerity. 

i Hydropower data do not include pure pumped storage capacity except where specifically noted. For more information on data impacts, see Methodological 

Notes, page 126. 

16

TOP FIVE COUNTRIES 

ANNUAL INVESTMENT/ADDITIONS/PRODUCTION IN 2012 

New 

capacity 

investment 

Hydropower 

capacity 

Solar PV 

capacity 

Wind power 

capacity 

Solar water 

collector 

(heating) 

capacity 1 

Biodiesel 

production 

Ethanol 

production 

1 China China Germany United States China United States United States 

2 United States Turkey Italy China Turkey Argentina Brazil 

3 Germany Brazil/Vietnam China Germany Germany 

Germany/ 

Brazil 

4 Japan Russia United States India India France Canada 

5 Italy Canada Japan United Kingdom Brazil Indonesia France 

TOTAL CAPACITY AS OF END-2012 

China 

Renewable 

power (incl. 

hydro) 

Renewable 

power (not 

incl. hydro) 

Renewable 

power per 

capita (not 

incl. hydro) 2 Bio-power Geothermal 

power 

Hydropower 

Concentrating 

solar thermal 

power (CSP) 

1 China China Germany United States United States China Spain 

2 United States United States Sweden Brazil Philippines Brazil United States 

3 Brazil Germany Spain China Indonesia United States Algeria 

4 Canada Spain Italy Germany Mexico Canada Egypt/Morocco 

5 Germany Italy Canada Sweden Italy Russia Australia 

Solar PV 

Solar PV per 

capita 

Wind power 

Solar water 

collector 

(heating) 1 

Solar water 

collector 

(heating) per 

capita 1 

Geothermal 

heat capacity 

Geothermal 

direct heat 

use 3 

1 Germany Germany China China Cyprus United States China 

2 Italy Italy United States Germany Israel China United States 

3 United States Belgium Germany Turkey Austria Sweden Sweden 

4 China Czech Republic Spain Brazil Barbados Germany Turkey 

5 Japan Greece India India Greece Japan Japan/Iceland 

1 Solar water collector (heating) rankings are for 2011, and are based on capacity of glazed water collectors only (excluding unglazed systems for 

swimming pool heating and air collectors). Including all water and air collectors, the 2011 ranking for total capacity is China, United States, Germany, 

Turkey, and Brazil. 

2 Per capita renewable power capacity ranking considers only those countries that place among the top 12 for total renewable power capacity, not 

including hydro. 

3 In some countries, ground-source heat pumps make up a significant share of geothermal direct-use capacity; the share of heat use is lower than the 

share of capacity for heat pumps because they have a relatively low capacity factor. Rankings are based on a mix of 2010 data and more recent statistics 

for some countries. 

Note: Most rankings are based on absolute amounts of investment, power generation capacity, or biofuels production; if done on a per capita basis, 

the rankings would be quite different for many categories (as seen with per capita rankings for renewable power, solar PV, and solar water collector 

capacity). Country rankings for hydropower would be different if power generation (TWh) were considered rather than power capacity (GW) because 

some countries rely on hydropower for baseload supply whereas others use it more to follow the electric load and match peaks in demand. 


01 

A concentrating solar thermal power (CSP) 

plant with a molten salt thermal storage 

system in the province of Seville, Spain. 

Installed capacity of many renewable 

energy technologies is growing rapidly, 

and renewables have quickly become 

a vital part of the global energy mix. 

Falling prices and technology advances 

are making renewables more affordable 

for consumers in developed and 

developing countries alike. 

© Geoeye / SPL / Cosmos

01 GLOBAL MARKET AND INDUSTRY 

OVERVIEW 

Global demand for renewable energy continued to rise during 

2011 and 2012, despite the international economic crisis, 

ongoing trade disputes, and policy uncertainty and declining 

support in some key markets. Renewable energy supplied an 

estimated 19% of global final energy consumption by the end 

of 2011, the latest year for which data are available. 1i Of this 

total, approximately 9.3% came from traditional biomass ii , 

which is used primarily for cooking and heating in rural areas of 

developing countries. Useful heat energy from modern renewable 

sources accounted for an estimated 4.1% of total final 

energy use; hydropower made up about 3.7%; and an estimated 

1.9% was provided by power from wind, solar, geothermal, and 

biomass, and by biofuels. 2 (See Figure 1.) Renewables are a 

vital part of the global energy mix. 3 

Modern renewable energy can substitute for fossil and nuclear 

fuels in four distinct markets: power generation, heating and 

cooling, transport fuels, and rural/off-grid energy services. 

This section provides an overview of recent market and 

industry developments in the first three sectors, while the 

Rural Renewable Energy section covers rural/off-grid energy 

in developing countries. The section that follows provides 

technology-specific coverage of market and industry developments 

and trends. 

During the five-year period 2008–2012, installed capacity iii 

of many renewable energy technologies grew very rapidly, 

with the fastest growth in the power sector. Total capacity of 

solar photovoltaics (PV) grew at rates averaging 60% annually. 4 

Concentrating solar thermal power (CSP) capacity increased 

more than 40% per year on average, growing from a small base, 

and wind power increased 25% annually over this period. 5 

Hydropower and geothermal power are more mature technologies 

and their growth rates have been more modest, in the 

range of 3–4% per year. 6 (See Figure 2.) Bio-power is also 

mature but with steady growth in solid and gaseous biomass 

capacity, increasing at an average 8% annually. 7 

Demand has also increased rapidly in the heating/cooling 

sector, particularly for solar thermal systems, geothermal 

ground-source heat pumps, and some bioenergy fuels and 

systems. Capacity of glazed solar water heaters has increased 

by an average exceeding 15% over the past five years, while 

ground-source heat pumps continue to grow by an average 

20% annually, and bio-heat capacity is growing steadily. 8 Wood 

pellet consumption (for both heat and power) is rising by about 

20% per year. 9 

Figure 1. Estimated Renewable Energy Share of Global Final Energy Consumption, 2011 

Biomass/solar/ 

geothermal heat 

and hot water 4.1% 

GLOBAL ENERGY 

RENEWABLES 

210 

Modern 

Renewables 9.7% 

Traditional 

Biomass 9.3% 

19% 

Hydropower 3.7% 

Wind/solar/ 

biomass/ 

geothermal 

power generation 1.1% 

Biofuels 0.8% 

Source: See 

Endnote 2 

for this section. 

Nuclear power 2.8% 

01 

Fossil fuels 78.2% 

i Endnotes are numbered by section and begin on page 134 (see full version online: www.ren21.net/gsr). 

ii Traditional biomass refers to solid biomass that is combusted in inefficient, and usually polluting, open fires, stoves, or furnaces to provide heat energy for 

cooking, comfort, and small-scale agricultural and industrial processing, typically in rural areas of developing countries. Traditional biomass currently plays a 

critical role in meeting rural energy demand in much of the developing world. Modern bioenergy is defined in this report as energy derived efficiently from solid, 

liquid, and gaseous biomass fuels for modern applications. (See Glossary for definitions of terms used in this report.) There is debate about the sustainability 

of traditional biomass, and whether it should be considered renewable, or renewable only if it comes from a sustainable source. For information about the 

environmental and health impacts of traditional biomass, see H. Chum et al., “Bioenergy,” in Intergovernmental Panel on Climate Change (IPCC), Special Report 

on Renewable Energy Sources and Climate Change Mitigation (Cambridge, U.K.: Cambridge University Press, 2011), and John P. Holdren et al., “Energy, the 

Environment, and Health,” in World Energy Assessment: Energy and the Challenge of Sustainability (New York: United Nations Development Programme, 2000). 

iii The following sections include energy data where possible but focus mainly on capacity data. See Methodological Notes, page 126. 


01 GlObal MaRkET aNd INduSTRy OvERvIEw 

Figure 2. Average Annual Growth Rates of Renewable Energy Capacity and Biofuels 

Production, End-2007–2012 

Concentrating solar 

thermal power 

Solar PV 

Wind power 

Hydropower 

Geothermal power 

Solar water heating 

(glazed collectors) 

Biodiesel production 

Ethanol production 

-1.3% 

3.1% 

3.3% 

4.0% 

2.6% 

0.4% 

11% 

14% 

15% 

17% 

19% 

25% 

43% 

42% 

2012 

60% 

61% 

End-2007 through 2012 

(Five-Year Period) 

Source: See 

Endnote 6 


0 10 20 30 40 50 60 70 

Growth Rate (percent) 

In the transport sector, the growth of liquid biofuels has been 

mixed in recent years. The average annual growth rate over the 

period from the end of 2007 through 2012 was nearly 11% for 

ethanol and 17% for biodiesel. Although biodiesel production 

continued to expand in 2012, it was at a much slower rate of 

growth, whereas ethanol production peaked in 2010 and has 

since declined. 10 

Most technologies continued to see expansion in both manufacturing 

and global demand. However, global market growth 

slowed for most technologies in 2012 relative to the previous 

few years. Uncertain policy environments and declining policy 

support—such as policy reversals and retroactive changes— 

affected investment climates in a number of established 

markets, and slowed momentum in Europe, China, and India. 

Solar PV and onshore wind power experienced continued price 

reductions in 2012 due to economies of scale and technology 

advances, but also due to a production surplus of modules 

and turbines. Combined with the international economic crisis 

(which has helped drive policy changes) and ongoing tensions 

in international trade, these developments have created new 

challenges for some renewable energy industries and, particularly, 

equipment manufacturers. 11 

In response, industry consolidation continued among players 

both large and small—most notably in the solar, wind, and 

biofuel industries—with several high-profile bankruptcies 

occurring throughout the year. 12 To increase product value and 

reduce costs, manufacturers vertically integrated their supply 

chains and diversified products. The move into project development 

and ownership also continued. 

While falling prices have hurt many manufacturers, they have 

opened up new opportunities. Oversupply and slowing growth 

in traditional markets have pushed companies to explore new 

markets. Falling prices and innovations in financing are making 

renewables more affordable for a broader range of consumers 

in developed and developing countries alike. 13 Lower prices 

made 2012 a good year for installers and consumers. 

As a result, new markets in Asia, Latin America, the Middle 

East, and Africa are gaining momentum, with new investment 

seen in all renewable technologies and end-use sectors. 14 (See 

Sidebar 2 and Investment Flows section.) Markets, manufacturing, 

and investment shifted increasingly towards developing 

countries during 2012. 

Renewables are also moving into new applications and industries, 

including desalination (especially using solar power in arid 

regions) and the mining industry, whose operations are energy 

intensive and often in remote locations. 15 Impacts of all of these 

developments on jobs in the renewable energy sector have 

varied by country and technology, but, globally, the number of 

people working in renewable energy industries has continued to 

rise. (See Sidebar 4 and Table 1, page 53.) 

20

■■Power Sector 

Total renewable power capacity worldwide exceeded 1,470 

gigawatts (GW) in 2012, up about 8.5% from 2011. Hydropower i 

rose to an estimated 990 GW, while other renewables grew 

21.5% to exceed 480 GW. 16 Globally, wind power accounted 

for about 39% of renewable power capacity added in 2012, 

followed by hydropower and solar PV, each accounting for 

approximately 26%. 17 (See Reference Table R1.) Solar PV 

capacity reached the 100 GW milestone to pass bio-power 

and become the third largest renewable technology in terms of 

capacity (but not generation), after hydro and wind. 

China is home to about one-fifth of the world’s renewable power 

capacity, with an estimated 229 GW of hydropower capacity 

plus about 90 GW of other renewables (mostly wind) at the end 

of 2012. 29 Of the 88 GW of electric capacity added in 2012, 

hydropower accounted for more than 17% and other renewables 

for about 19%. 30 Renewables met nearly 20% of China’s 

electricity demand in 2012, with hydropower accounting for 

17.4%. 31 Relative to 2011, electricity output in 2012 was up 

35.5% from wind, and 400% from solar PV, with wind generation 

increasing more than generation from coal and passing 

nuclear power output for the first time. 32 

Renewables have accounted for an ever-growing share of 

electric capacity added worldwide each year, and in 2012 they 

made up just over half of net additions to electric generating 

capacity. 18 By year’s end, renewables comprised more than 

26% of total global power generating capacity and supplied 

an estimated 21.7% of global electricity, with 16.5% of total 

electricity provided by hydropower. 19 (See Figure 3.) While 

renewable capacity rises at a rapid rate from year to year, 

renewable energy’s share of total generation is increasing more 

slowly because many countries continue to add significant 

fossil fuel capacity, and much of the renewable capacity being 

added (wind and solar energy) operates at relatively low capacity 

factors. 

Even so, wind and solar power are achieving high levels of 

penetration in countries like Denmark and Italy, which generated 

30% of electricity with wind and 5.6% with solar PV, respectively, 

during 2012. 20 In an increasing number of regions—including 

parts of Australia, Germany, India, and the United States—the 

electricity generation share from variable resources has 

reached impressive record peaks, temporarily meeting high 

shares of power demand, while often driving down spot market 

prices. 21 

In addition, the levelised costs of generation from onshore wind 

and solar PV have fallen while average global costs (excluding 

carbon) from coal and natural gas generation have increased 

due to higher capital costs. 22 As prices for many renewable 

energy technologies continue to fall, a growing number of 

renewables are achieving grid parity in more and more areas 

around the world. 23 

China, the United States, Brazil, Canada, and Germany 

remained the top countries for total renewable electric 

capacity by the end of 2012. 24 The top countries for non-hydro 

renewable power capacity were China, the United States, and 

Germany, followed by Spain, Italy, and India. 25 (See Figure 4 

and Reference Table R2.) France and Japan tied for a distant 

seventh, followed closely by the United Kingdom, Brazil, and 

then Canada and Sweden. 26 Of these 12 countries, the ranking 

on a per capita basis for non-hydro renewable energy capacity 

in use puts Germany first, followed by Sweden, Spain, Italy, 

Canada, the United States, the United Kingdom, France, Japan, 

China, Brazil, and India. 27ii (See Top Five Countries Table on page 

17 for other rankings.) In total, these 12 countries accounted 

for almost 84% of global non-hydro renewable capacity, and the 

top five countries accounted for 64%. 28 

Figure 3. Estimated Renewable Energy Share 

of Global Electricity Production, END-2012 

Fossil fuels 

and nuclear 78.3% 

Hydropower 

16.5 % 

Other 

renewables 

(non-hydro) 5.2 % 

In the United States, renewables accounted for 12.2% of net 

electricity generation in 2012, and for more than 15% of total 

capacity at year’s end. 33 Hydropower output was down 13.4%, 

while net generation from other renewables rose from 4.7% in 

2011 to 5.4% in 2012. 34 For the first time, wind represented 

the largest source of electric capacity added, accounting for as 

much as 45%, and all renewables made up about half of U.S. 

electric capacity additions during the year. 35 

Renewables accounted for 22.9% of Germany’s electricity consumption 

(up from 20.5% in 2011), generating more electricity 

than the country’s nuclear, gas-fired, or hard coal power plants 

(but not lignite plants). 36 Total renewable electricity generation 

(136 TWh) was more than 10% above 2011 output, with wind 

energy representing a 33.8% share, followed by biomass 

with 30% (more than half from biogas), solar PV 20.6%, and 

hydropower 15.6%. 37 Renewables met 12.6% of Germany’s total 

final energy needs (up from 12.1% in 2011). 38 

Spain has experienced a slowdown in renewable capacity 

additions resulting from the economic recession and recent 

policy changes. (See Policy Landscape section.) However, 

globally it still ranked fourth for non-hydro renewable power 

capacity, with an estimated 30.8 GW in operation, plus 17 GW of 

hydro. 39 Renewable energy provided 32% of Spain’s electricity 

Note: Based on 

renewable generating 

capacity 

in operation at 

year-end 2012. 

Source: See 

Endnote 19 


01 

i Global hydropower data and thus total renewable energy statistics in this report reflect an effort to leave capacity of pure pumped storage out of the totals. 

For more information, see Methodological Notes, page 130. 

ii While there are other countries with high per capita amounts of renewable capacity and high shares of electricity from renewable sources, the GSR focuses 

here on those with the largest amounts of non-hydro capacity. (See Reference Table R11 for country shares of electricity from renewable sources.) 



FIGURE 4. RENEWABLE POWER CAPACITIES* IN WORLD, EU-27, BRICS, AND TOP SIX COUNTRIES, 2012 

World total 

480 

EU-27 

210 

BRICS 

128 

Wind 

power 

Solar 

PV 

Biopower 

Geothermal CSP 

power and ocean 

Gigawatts 0 50 100 

200 

300 

400 

500 

Source: See 

Endnote 25 for 

this section. 

China 

United States 

Germany 

Spain 

Italy 

India 

Gigawatts 

*not including hydropower 

24 

31 

29 

0 10 

20 30 40 50 

60 70 80 

71 

86 

90 

90 

needs in 2012 (down from 33% in 2011), with wind contributing 

the largest share, followed by solar power. 40 

Italy remained in fifth place with 29 GW of non-hydro renewables 

and 18 GW of hydropower by the end of 2012. 41 Renewables met 

27% of the country’s electricity demand, up from 24% in 2011, 

with non-hydro renewables accounting for 15%. 42 

About 4.2 GW of renewable power capacity was added in 

India during 2012, including about 0.7 GW of hydropower and 

3.5 GW of other renewables (mostly wind), for a year-end total 

exceeding 66 GW. 43 Renewables accounted for more than 31% of 

total installed capacity at year’s end, with non-hydro renewables 

representing over 11% (24 GW). 44 

The BRICS i nations accounted for 36% of total global renewable 

power capacity and almost 27% of non-hydro renewable 

capacity by the end of 2012. While Russia has a large capacity 

of hydropower, virtually all of the BRICS’ non-hydro capacity 

is in Brazil, India, and particularly China. 45 South Africa is also 

starting to gain momentum, with significant wind and CSP 

capacity under construction by year’s end. 46 

While the BRICS countries led for capacity of all renewables, 

the European Union (EU) ii had the most non-hydro capacity 

at the end of 2012, with approximately 44% of the global 

total. Renewables accounted for more than half of all electric 

capacity added in the EU during the 2000–2012 period, and 

for almost 70% of additions in 2012—mostly from solar PV 

(37% of all 2012 additions) and wind (26.5%). 47 At year’s end, 

renewables made up more than one-third of the region’s total 

generating capacity, with non-hydro renewables accounting for 

more than one-fifth. 48 In 2011 (the latest data available), renewables 

met 20.6% of the region’s electricity consumption (up 

from 20% in 2010) and 13.4% of gross final energy consumption 

(compared to 12.5% in 2010). 49 

In the EU and elsewhere, an increasing number of households 

and businesses are making voluntary purchases of renewable 

energy. Voluntary purchases of heat and transport biofuels 

are options in some countries, but “green energy” purchasing 

remains most common for renewable electricity. The largest 

corporate users are reportedly in Japan, Germany, and Finland. 50 

Germany has become one of the world’s green power leaders. 

Its market grew from 0.8 million residential customers in 2006 

to 4.3 million in 2011, or 10% of all private households in the 

country purchasing 13.1 TWh of renewable electricity; including 

commercial customers, purchases exceeded 21 TWh. 51 

Other major European green power markets include Austria, 

Belgium (Flanders), Finland, Italy, the Netherlands, Sweden, 

Switzerland, and the United Kingdom, although the market 

share in these countries remains below German levels. 52 

In the United States, more than half of electricity customers 

have the option to purchase green power directly from a retail 

electricity provider. In 2011, the U.S. green power market grew 

an estimated 20%, and Green-e Energy, the country’s leading 

i An association of emerging national economies including Brazil, Russia, India, China, and South Africa. 

ii The use of "European Union," or "EU" throughout refers specifically to the EU-27. 

22

Sidebar 1. The REN21 Renewables Global Futures Report 

In January 2013, REN21 published a sister report to its annual 

Global Status Report—the REN21 Renewables Global Futures 

Report—that portrays the status of current thinking about the 

future of renewable energy. 

The new report is not one scenario or viewpoint, but a synthesis 

of the contemporary thinking of many, as compiled from 170 

interviews with leading experts from around the world, and from 

50 recent energy scenarios published by a range of organisations. 

This synthesis shows the range of credible possibilities for 

renewable energy futures based on both scenario projections 

and expert opinion. The report also features a series of “Great 

Debates” that frame current development and policy issues 

and choices on the path to a transformed renewable energy 

future. 

The report shows that much contemporary thinking about the 

future of renewable energy is rooted in the past. For example, 

many conservative scenarios show future shares of renewable 

energy remaining in the 15–20% range globally, about the level 

today. But such views have become increasingly untenable 

given the dynamic growth of markets over the past decade and 

the dramatic technology evolution and cost reductions seen 

in recent years. Many “moderate” scenarios show long-term 

shares in the 30–45% range, and this range has become 

increasingly credible in many countries. Beyond that, many 

high-renewables projections show long-term shares in the 

50–95% range, and such projections are also growing more 

credible and becoming mainstreamed. 

Projections for global renewable energy capacity by 2030 from 

a variety of scenarios show wind power capacity increasing 

between 4-fold and 12-fold, solar PV between 7-fold and 

25-fold, CSP between 20-fold and 350-fold, bio-power 

between 3-fold and 5-fold, geothermal between 4-fold and 

15-fold, and hydro between 30% and 80% (all based on actual 

2011 GW of capacity). 

Expert and scenario projections show investments in renewable 

energy of up to USD 500 billion annually by 2020–25. Finance 

experts observed that many new sources of finance, from 

community funds to pension funds, will be needed to support 

such levels of investment. Finance experts also believed that 

renewable energy projects are coming to be seen as among the 

lowest-risk investments, posing “nothing more than standard 

industrial risk” in the words of one expert, and even lower risk 

than some fossil fuel-based investments. 

The report shows that integration of renewable energy into 

power grids, buildings, industry, and transport is becoming 

a pressing and immediate issue. The report outlines a dozen 

options for balancing high shares of variable renewables on 

power grids, and dispels the myth that expensive energy storage 

will be required. It also notes that while some utilities are 

resisting integration progress, many others are at the forefront, 

working actively to meet the integration challenge. 

Integration into buildings is perhaps the most difficult, given 

existing building materials and practices, but many costeffective 

opportunities exist, and low-energy or zero-energy 

buildings are important. In transport, integration in the form of 

advanced biofuels and electric vehicles charged from renewables 

is key, although still somewhat uncertain, according to 

many of the experts. These integration opportunities and challenges 

point to new types of policies needed to support each 

form of integration, sector by sector, in parallel with the many 

price- or cost-based policies that have existed historically. 

Beyond integration, many experts viewed the long-term 

future of renewable energy as “transformative” for for energy 

systems—for example, as electric power becomes much 

more flexible and multi-level, with variable supply and demand 

interacting at centralised, distributed, and micro-grid levels; as 

transport becomes provided by a much wider range of vehicle 

and fuel types serving more differentiated needs for mobility; 

and as renewable-energy-integrated building materials and 

construction practices, coupled with low-energy building 

designs, become ubiquitous. 

Many experts said that the future challenges facing renewables 

are no longer fundamentally about technology. Nor is economics 

the bottleneck, as “grid parity” and other measures of 

competitiveness have arrived, or are soon arriving, for many 

renewables in numerous locales. Such views suggest that the 

future of renewable energy is fundamentally a choice, not a 

foregone conclusion given technology and economic trends. 

certifier of voluntary green power, certified 27.8 TWh. 53 By early 

2013, the 50 largest purchasers (including municipalities and 

corporations) in the Environmental Protection Agency’s Green 

Power Partnership were buying more than 17 TWh annually 

from a variety of renewable sources, with 17 partners covering 

all of their electricity demand. 54 Green power markets also exist 

in Australia, Canada, Japan, and South Africa. 55 

More than 50 major international corporations had adopted the 

WindMade label by the end of 2012. 56 The label was launched 

globally in 2011 to help consumers identify companies and 

products using wind energy, and plans were announced in 

2012 to develop a new label for all renewables. 57 In early 

2013, a network of European environmental NGOs introduced 

“EKOenergy,” aiming to provide a green labelling standard for 

all of Europe. 58 

Major industrial and commercial customers in Europe, India, 

the United States, and elsewhere continued to install and 

operate their own renewable power systems, while community-owned 

and cooperative projects also increased in number 

during 2012. 59 The year saw expanded installations of smallscale, 

distributed renewable systems for remote locations 

as well as grid-connected systems where consumers prefer 

to generate at least a portion of their electricity on-site. As 

consumers increasingly become producers of power, particularly 

in some European countries, some major utilities are losing 

market share, putting strains on current business models. 60 

01 



Sidebar 2. Regional Spotlight: Africa 

Having long supported a range of oil and gas industries, Africa 

is now widely recognised for the potential of its renewable 

energy resources to provide electricity, heat, and transport 

fuels. Large areas of Southern and North Africa i are now 

known to have world-class solar resources, and many African 

countries have among the highest potential for wind and 

geothermal energy in the developing world. Some estimates 

suggest that only 7% of the continent’s hydropower potential 

has been realised. Already a heavy user of traditional biomass, 

much of Africa also is ripe for the adoption of more sustainable 

bioenergy practices and technologies. 

Nonetheless, African renewable energy markets remain the 

least developed globally. The scale of modern energy use 

remains fractional relative to total energy demand, and modern 

renewables (with the exception of large-scale hydro) are typically 

off-grid and small. 

But markets are shifting rapidly. Growing awareness of the 

potential of African renewables, greater economic resilience, 

surging growth, and more stable governments are driving the 

emergence of a diverse portfolio of renewables on a large 

scale. Many African countries are now shifting their renewable 

energy focus from small, off-grid systems (a legacy of donorled 

rural electrification programmes) to utility-scale systems 

and infrastructure, as part of a broader vision of sustainable 

macroeconomic development. 

Renewable energy markets have responded strongly, driven by 

a huge demand for additional generating capacity (expected to 

average around 7 GW a year for the next decade). North African 

wind markets continue to lead on the continent, with well over 

10 GW targeted by 2020. Significant expansion of geothermal 

capacity is in various stages of planning and development in 

the east, led by Kenya, while hydropower capacity at all scales 

is growing across the continent. In South Africa, 2013 will see 

construction of the region's first grid-connected wind and solar 

power projects of 5 MW and larger, after years of planning and 

regulatory reform. 

Renewable heating markets remain small in the global context, 

but are growing, with sub-Saharan Africa producing more solar 

heat for domestic water heating per capita than regions such as 

Asia (excluding China) and the United States and Canada. ii And 

several African countries are actively initiating or expanding 

local biofuels production, often backed by foreign investment. 

Africa remains largely reliant on foreign technologies, but market 

developments are spurring the growth of local industries. 

Local manufacturing of “balance of system” components is 

firmly established in a few more advanced African economies. 

Promisingly, more complex items such as wind turbines, towers, 

and blades, as well as solar panels and inverters, are being 

produced either commercially or as prototypes for future commercial 

manufacture. Technological innovation is being more 

strongly promoted in national economic strategies, supported 

by inter-regional organisations such as the African Technology 

Policy Studies Network. 

Increased adoption of national renewable energy strategies 

has been a strong catalyst for this nascent upsurge in activity. 

Around 20 African countries now have formal renewable energy 

policies in place, representing a significant increase over the 

past five years, and many of these countries have ambitious 

renewable energy targets. (See Reference Tables R10–R12.) 

Intergovernmental organisations or groupings such as EAC, 

ECOWAS, MENA, and SADC have established regional centres 

for renewable energy (such as ECREEE in West Africa and 

RCREEE in North Africa), or developed regional strategies to 

promote shared visions for cohesive renewable energy development 

across their member states. iii 

Keeping pace with surging energy demand will require vast 

investment in energy infrastructure, equating to more than 6% 

of the continent’s GDP (or roughly USD 41 billion a year) over 

the coming decade. Foreign direct investment is crucial for 

closing the investment gap, and China has played a dominant 

role, funding large hydropower projects in Ethiopia, Nigeria, the 

Sudan, and Zambia, and geothermal development in Kenya. 

Chinese firms and investors are also active in wind and solar 

development across the continent. 

While the continent shows unprecedented growth and 

robustness, most African countries still face urgent, short-term 

socioeconomic challenges that dominate national budgets and 

planning strategies. Capital investments in capacity expansion 

are lagging far behind energy demand, and renewable energy 

investment in Africa remains low in comparison with other 

global regions. Negative international perceptions remain. 

Although foreign companies active in Africa are positive about 

the continent’s prospects as an investment destination, companies 

with no local presence remain overwhelmingly negative. 

Potentially harmful impacts of renewable energy growth have 

also been highlighted, with watchdog organisations citing the 

danger of land uptake for renewables (particularly biofuels) by 

governments and foreign investors as a threat to the social and 

economic prosperity of local communities. 

Nonetheless, with economic growth and investments in energy 

infrastructure at unprecedented levels, Africa is now widely 

accepted as one of the world’s most promising renewable 

energy markets. 

The “Regional Spotlight” sidebar is appearing for the first time in 

GSR 2013 and will be a regular feature of the report, focusing on 

developments and trends in a different world region every year. 

i REN21 recently published the MENA Renewables Status Report, focusing on renewables in the Middle East and North Africa region. The report can be 

accessed via the REN21 website at www.ren21.net. 

ii Based on annual collector yield of glazed (flat plate collectors and evacuated tube collectors) water collectors in operation, in 2010. See Endnote for this 

sidebar. 

iii EAC is the East African Community. ECOWAS is the Economic Community of West African States. MENA is the Middle East and North Africa, which is a 

geographical grouping of countries and not a formal organisation. SADC is the Southern African Development Community. ECREEE is the ECOWAS Centre for 

Renewable Energy and Energy Efficiency. RCREEE is the Regional Center for Renewable Energy and Energy Efficiency. 

Source: See Endnote 14 for this section. 

24

■■Heating and Cooling Sector 

Modern biomass, solar thermal, and geothermal energy 

currently supply hot water and space heating (and some cooling 

with the use of heat pumps and absorption chillers) for tens 

of millions of domestic and commercial buildings worldwide. 

These resources are also used to supply heat for industrial 

processing and agricultural applications. Passive solar building 

designs provide a significant amount of heat (and light), and 

their numbers are on the rise, but due to lack of data they are 

not included in this report. 

Modern biomass accounts for the vast majority of renewable 

heating worldwide. 61 Europe is the leading region for bio-heat 

consumption, but demand is rising elsewhere, and biogas is 

becoming an increasingly important source of cooking fuel in a 

growing number of developing countries. 62 

Solar collectors are used in more than 56 countries worldwide 

for water (and increasingly for space) heating in homes, schools, 

hospitals, hotels, and government and commercial buildings. 63 

Their use is extensive in China, where solar water heaters cost 

less over their lifetimes than do natural gas or electric heaters. 64 

Geothermal energy is used by at least 78 countries for direct 

heating purposes, including district heat systems, bathing 

and swimming applications, industrial purposes, agricultural 

drying, and other uses. 65 Ground-source heat pumps can both 

heat and cool space and represent the largest and historically 

fastest-growing segment of geothermal direct use. 66 

Use of renewable energy technologies for heating and cooling is 

still limited relative to their potential for meeting global demand. 

But interest is on the rise, and countries (particularly in the EU) 

are starting to better track the share of heat derived from renewable 

sources and to enact supporting policies. For example, 

renewables met 10.4% of Germany’s heating demand (mostly 

with biomass) in 2012, and Denmark has banned the use of 

fossil-fuel fired boilers in new buildings as of 2013. 67 Consumers 

in some countries—including Denmark, Japan, and the United 

Kingdom—now can choose “green heat” through voluntary 

purchasing programmes, although options are relatively limited 

compared to green power. 68 

Trends in the heating (and cooling) sector include the use of 

larger systems, increasing use of combined heat and power 

(CHP), the feeding of renewable heat and cooling into district 

schemes, and the growing use of renewable heat for industrial 

purposes. In addition, some EU countries are starting to see 

hybrid systems that link solar thermal and other heat sources, 

such as biomass. Some are using district heat systems (often 

based on renewable sources) to balance electricity generation 

from variable sources, for example by using excess power 

generation on very windy days to heat water directly or with 

heat pumps. 69 

■■TransportATION Sector 

Renewable energy is currently used in the transport sector in 

the form of liquid and gaseous biofuels, as well as electricity for 

trains and electric vehicles, and it offers the potential to power 

fuel-cell vehicles through renewably produced hydrogen. 

Liquid biofuels currently provide over 2.5% of global transport 

fuels (3.4% of road transport fuels and a very small but growing 

share of aviation fuels), and account for the largest share of 

transport fuels derived from renewable energy sources. 70 

Limited but growing quantities of gaseous biofuels (mainly 

biomethane from purified biogas) are fuelling cars, local trains, 

buses, and other vehicles in several EU countries (most notably 

Germany and Sweden) and in some communities in North 

America and elsewhere. 71 Plans are under way in many countries, 

including in the Middle East and Asia, to develop facilities 

for biomethane production and vehicle fuelling. 72 

Electricity is used to power trains, city transit, and a growing 

number of electric passenger road vehicles and motorised 

cycles, scooters, and motor bikes. There are limited but 

increasing initiatives to link electric transport systems with 

renewable electricity. In early 2013, for example, Deutsche 

Bahn announced plans for at least 75% of long-distance journeys 

in Germany to be powered by renewable energy. 73 In some 

locations, particularly at the local level, electric transport is tied 

directly to renewable electricity through specific projects and 

policies. (See Policy Landscape section.) 

01 


02 

Fields of corn, a source of fuel ethanol, 

in the U.S. state of Kansas. 

Global production of biofuels dropped 

slightly in 2012, although some countries 

increased production, and markets 

for other renewables continued to 

expand. It was a difficult year for many 

manufacturers and some traditional 

markets, but lower prices made it a good 

year for installers and consumers. 

Source: NASA

02 MARKET AND INDUSTRY TRENDS 

BY TECHNOLOGY 

BioEnergy 

The use of biomass to provide modern energy services has 

continued to increase in the building, industry, and transport 

end-use sectors in recent years. In addition to being a source 

of food, fibre, and feed for livestock, as well as feedstock for 

materials and chemical production, biomass accounts for over 

10% of global primary energy supply and is the world’s fourth 

largest source of energy (following oil, coal, and natural gas). 1 

Biomass used for energy purposes is derived from a number 

of sources. Residues from forests, wood processing, and food 

crops dominate. Short-rotation energy crops, grown on agricultural 

land specifically for energy purposes, currently provide 

about 3–4% of the total biomass resource consumed annually. 2 

The total area of land used for bioenergy crops is difficult to 

quantify accurately because of large data gaps. Furthermore, 

some energy crops are grown for competing non-energy uses. 3 

For example, ethanol production volumes from sugar cane 

fluctuate with the sugar commodity market price, and, in the 

case of palm oil, only around 15% of the total produced is used 

for biodiesel. 4 

The production of biomass feedstock and its conversion to 

useful energy have varying environmental and socioeconomic 

impacts that depend on a number of factors, as with 

other renewables. The sustainability of biomass production, 

associated land use change, feedstock competition, trade 

restrictions, and impacts of biofuels produced from food crops 

such as corn remain under review and could affect future 

demand. 5 Ethanol production in the United States, for example, 

consumes about 10% of annual global corn production, raising 

concerns about its impact on food supply. 6 

The bioenergy sector is relatively complex because there are 

many forms of biomass resources; various solid, liquid, and 

gaseous bioenergy carriers; and numerous routes available for 

their conversion to useful energy services. Biomass markets 

often rely on informal structures, which makes it difficult to 

formally track data and trends. Furthermore, national data collection 

is often carried out by multiple institutions that are not 

always well-coordinated, or that report contradictory findings. 

Consequently, national and global data on biomass use and 

bioenergy demand are relatively difficult to measure and, as a 

result, relatively uncertain. 

■■Bioenergy Markets 

Total primary energy supplied from biomass increased 2–3% 

in 2012 to reach approximately 55 EJ. 7 (See Figure 5.) Heating 

accounted for the vast majority of biomass use (46 EJ), including 

heat produced from modern biomass and the traditional, 

inefficient use of animal dung, fuelwood, charcoal, and crop 

Figure 5. Biomass-to-Energy Pathways 

Electricity 

Biofuels 

Buildings 

Industry 

Modern 

biomass 

GLOBAL 

ANNUAL PRIMARY 

BIOMASS DEMAND 

55 EJ 

Traditional 

biomass 

Heat sold or used 

on site 

Losses 

End-use losses 

02 

Useful heat 

for cooking 

and heating 

Source: See 

Endnote 7 for 

this section. 


02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – BIOENERGY 

Figure 6. Wood Pellet Global Production, by Country or Region, 2000–2012 

Million Tonnes 

Total 22.4 

20 

15 

Rest of World 

Rest of Asia 

China 

Russia 

United States and Canada 

European Union (EU-27) 

10 

5 

Source: See 


this section. 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

(preliminary) 

residues for domestic cooking and heating of dwellings and 

water in developing countries. 8 Biomass of around 4.5 EJ of 

primary energy was consumed for electricity generation, and a 

similar amount for biofuels. 9 

Traditional biomass heating contributed an estimated 6–7% 

of total global primary energy demand in 2012. 10 (See Rural 

Renewable Energy section.) This section focuses on the use 

of biomass for modern applications, converted into a range of 

energy carriers (solid, liquid, and gaseous fuels) to efficiently 

provide useful energy services in the heating, electricity, and 

transport sectors. In 2012, the total volume of modern biomass 

consumption contributed an estimated 3–4% of global primary 

energy, with an energy content of around 18.5 EJ. 

Compared with 2011, bio-heat production for the building and 

industry sectors increased by 1–2%; bio-power (electricity 

generation), including combined heat and power plant (CHP) 

production, increased by an estimated 4%; and biofuel production 

volumes declined by around 1%. 11 

In some regions of the world, available biomass feedstock 

supplies are insufficient to meet growing demand for bioenergy, 

whereas other regions can produce supplies in excess. 12 This 

situation drives international trade in solid and liquid biomass 

fuels, and has led to the establishment of several biomass 

exchanges to facilitate both domestic and international trade. 13 

Bio-methane, fuelwood, charcoal, briquettes, and agricultural 

residues are mainly traded locally, whereas wood pellets, wood 

chips, biodiesel, and ethanol are traded both nationally and 

internationally. 14 The energy content of traded solid biomass 

fuels (excluding charcoal) is about twice that of net trade in 

biofuels. 15 

Smaller, more-compact wood pellets account for only 1–2% of 

total global solid biomass demand, but they have experienced 

more rapid growth and account for a large share of solid biomass 

trade; in 2012, global production and transport (by road, 

rail, and ship) of pellets exceeded 22 million tonnes. 16 (See 

Figure 6.) Demand continues to increase due to the pellets’ 

higher energy density and lower moisture content relative to 

wood chips; ease of handling; convenience of use; suitability for 

co-firing in coal-fired power plants; and the option of automatic 

control options in small heat plants. 17 About two-thirds of pellet 

production is used in small heat plants and one-third in larger 

power plants. 18 

In 2012, around 8.2 million tonnes of pellets were traded internationally. 

19 More than 3.2 million tonnes (40%) of pellets were 

shipped from North America to Europe, an increase of nearly 

50% over 2011. 20 This increased demand was due greatly 

to rising consumption in the United Kingdom, where large 

volumes are required to supply the 750 MW Tilbury bio-power 

station and a 4 GW coal-fired power plant (half of which is being 

converted to combust 7.5 million tonnes of pellets annually). 21 

In anticipation of further pellet demand, the U.K. Port of Tyne, 

already the largest pellet handler in Europe, is expanding its 

pellet handling and storage facilities and rail line at a cost of 

USD 300 million. 22 

Pellet consumption is rising in other regions as well. In South 

Korea, for example, eight new pellet plants were under 

construction as of early 2013. There are also plans to import 

an additional 5 million tonnes of pellets annually by 2020 

to achieve the compulsory 2% renewables quota on power 

generators that was implemented in 2012. 23 

In addition to wood pellets, biodiesel and ethanol are the main 

fuels traded internationally. Biofuels are used for heating and 

electricity generation, but primarily as transportation fuels. 

Two developments in 2012 had a significant impact on liquid 

biofuels trade: the severe drought in the midwestern United 

States, which reduced corn yields; and a drop in the sugar 

commodity price, which resulted in increased ethanol production 

in Brazil. 24 Consequently, in August 2012, the United States 

28

ecame a net importer of ethanol (mainly from Brazil) for the 

first time since January 2010. 25 

The leading markets for bioenergy are diverse, and they vary 

depending on fuel type. Thus far, the pellet market has been 

limited primarily to Europe (the leading consumer) as well as to 

North America and Russia. 26 Europe also is the largest market 

for biogas and biodiesel. 27 The top ethanol-consuming region 

in 2012 was North America, followed by South America. 28 

However, production and consumption of all forms of bioenergy 

are spreading to new countries, with particularly rapid 

increases in Asia. 

■■Bio-Heat (and Cooling) Markets 

Combustion of solid, liquid, and gaseous biomass fuels can 

provide heat over a range of temperatures and at different 

scales for use by industry, agricultural processes, drying, 

district heating schemes, water heating, and space heating in 

individual buildings. In 2012, approximately 3 GW of new modern 

biomass heating capacity was commissioned, bringing the 

global total to around 293 GW. 29 Sales of biomass appliances, 

including domestic wood burners and gasifier stoves (


BIOENERGY 

Figure 7. Bio-power Generation of Top 20 Countries, Annual Average 2010–2012 

Source: See 


this section. 

United States 

Germany 

Brazil 

China 

Japan 

Sweden 


Finland 

Italy 

Canada 

Netherlands 

Poland 

Denmark 

Austria 

Belgium 

France 

Spain 

India 

Thailand 

Portugal 

13 

12 

11 

10 

7.7 

7.1 

5.3 

5.2 

4.9 

4.6 

4.5 

4.3 

3.4 

3.2 

3.0 

22 

27 

37 

36 

0 10 20 30 40 50 60 70 

Terawatt-hours per Year 

62 

Figure 8. Ethanol and Biodiesel Global Production, 2000–2012 

Billion Litres 

120 

100 

85 84.2 

83.1 

80 

Ethanol 

Biodiesel 

66 

73.2 

60 

Total 

49.5 

40 

20 

28.5 

21.0 

24.2 

17.0 19.0 

0.8 1.0 1.4 1.9 2.4 

31.1 

3.8 

39.2 

6.5 

10.5 

15.6 

17.8 

18.5 

22.4 

22.5 

Source: See 


this section. 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

30

data. About 230 co-firing plants were operational or planned 

by year’s end, located mainly in northern Europe, the United 

States, Asia, and Australia. 52 

Most sugarcane-producing countries, such as Brazil, generate 

combined heat and power using bagasse. 53 Grid-connected 

bagasse CHP plants also exist in Mauritius, Tanzania, Uganda, 

and Zimbabwe, where a community-scale biogas plant is also 

being constructed in Harare to convert organic waste to heat 

and electricity. 54 Several other African countries, including 

Kenya, plan similar installations. 55 

■■Transport Biofuel Markets 

Liquid biofuels continue to make a small but growing contribution 

to transport fuel demand worldwide, currently 

providing about 3% of global road transport fuels. They also 

are seeing small but increasing use in the aviation and marine 

sectors. 56 Growth in biofuels markets, investment, and new 

plant construction has slowed in several countries in response 

to a number of factors: lower margins, spiking of commodity 

prices, policy uncertainty, increased competition for feedstock, 

impacts of drought conditions on crop productivity, concerns 

about competition with food production for land and water 

resources, and concerns about the sustainability of production 

more broadly. 57 Even so, biofuel blend mandates continue to 

drive demand. (See Policy Landscape section). 

Global production of fuel ethanol in 2012 was an estimated 

83.1 billion litres, down about 1.3% by volume from 2011. This 

was offset partly by a small increase in biodiesel production. 58 

(See Figure 8.) Outside of the United States, global ethanol 

production was up more than 4%, but U.S. ethanol production 

dropped more than 4% to 50.4 billion litres, due partly to high 

corn prices resulting from the mid-year drought. By contrast, 

Brazil’s production increased 3% to 21.6 billion litres, although 

investment in new sugarcane ethanol plants was very low compared 

with recent years. 59 Overall, the United States accounted 

for 61% (63% in 2011) of global ethanol production and Brazil 

for 26% (25% in 2011). 60 

The other leading producers included China, Canada, and 

France, as in 2011, although at much lower production volumes 

than the two leaders. Demand continued to rise in Sweden, 

where around 200,000 flex-fuel vehicles are using high blends 

(up to E85) of locally produced and imported ethanol. 61 

The average world ethanol price in 2012 was approximately 

USD 0.85/litre (USD 1.20/litre gasoline equivalent), having 

increased steadily from around USD 0. 41/litre in 2006; the 

U.S. domestic price fell from about USD 0.60/litre in 2011 to 

USD 0.55/litre in 2012, until the mid-year drought pushed it 

back to 2011 levels. 62 The average world price for biodiesel was 

around USD 1.55/litre of gasoline equivalent, higher than in the 

previous five years, when prices ranged between USD 0.90 and 

USD 1.50 per litre. 63 

Global biodiesel production continued to increase, but at 

a much slower rate relative to the previous several years, 

reaching 22.5 billion litres in 2012, compared with 22.4 billion 

litres in 2011. 64 The United States was again the world’s 

leading producer, followed by Argentina, Germany, Brazil, and 

France—with German and Brazilian production being approximately 

equal. 65 

U.S. biodiesel plants produced 3.6 billion litres in 2012, up 

only slightly over 2011 levels, but approaching the target set by 

the Environmental Protection Agency (EPA) under the federal 

Renewable Fuels Standard, or RFS. This standard requires 4.8 

billion litres (1.28 billion gallons) of biodiesel to be included in 

diesel fuel markets in 2013. 66 

Europe accounted for 41% of total global biodiesel production, 

led by Germany, which produced an estimated 2.7 billion litres 

in 2012 (down 14% relative to 2011). 67 Production declined 7% 

across the region and in most European countries—including 

Spain (-32%), Portugal (-14%), and Italy (-44%)—but it was 

up in France (18%), Poland (63%), and the United Kingdom 

(53%). 68 

Brazil’s total annual biodiesel production from soybean oil 

(77–82%), beef tallow (13–17%), and cottonseed oil (2%) 

increased slightly to at 2.7 billion litres. 69 Argentina passed 

Germany to rank second for total biodiesel production, at 

2.8 billion litres. 70 Elsewhere in Latin America, three jatropha 

plantations were certified in Mexico by the Roundtable on 

Sustainable Biofuels, and a small biodiesel plant using jatropha 

oil was established in Cuba. 71 

China’s biofuel production remained unchanged at around 

2.1 billion litres of ethanol and 0.2 billion litres of biodiesel. 72 

Thailand increased both its ethanol and biodiesel production 

to a total of 1.6 billion litres, 40% higher than in 2011. 73 India 

overtook Italy in total biofuel production in 2012, increasing its 

ethanol production by 25% to 0.5 billion litres. 74 

On a regional basis, North America continued to lead in 

ethanol production, and Europe in the production of biodiesel. 

However, production of both ethanol and biodiesel is increasing 

rapidly in Asia. 75 Biofuels production in Africa is still very limited, 

but markets are slowly expanding, and ethanol production rose 

from 270 million litres in 2011 to an estimated 300 million litres 

in 2012. 76 In Zambia, for example, the 200,000 litres of jatropha 

biodiesel produced in 2011 was expected to triple in 2012 as 

more feedstock became available. 77 

In 2012, U.S. production of advanced biofuels from lignocellulosic 

feedstocks reached 2 million litres; it was anticipated 

that 36 million litres would be produced in 2013, driven partly 

by demand from the military. 78 These volumes, however, remain 

only a small proportion of the original U.S. mandate under the 

RFS that was subsequently waived. 79 China also made progress 

on advanced biofuels in 2012, with around 3 million litres of 

ethanol produced from corn cobs and used in blends with gasoline. 

80 Europe has several demonstration plants in operation but 

each has produced only small volumes to date. 81 

Biomethane (biogas after removal of carbon dioxide and 

hydrogen sulphide) is now used widely as a vehicle fuel in 

Europe. During 2012 in Germany, for example, the share of 

biomethane in natural gas increased from 6% to more than 

15%, and the number of fueling stations selling 100% biomethane 

more than tripled, from 35 to 119. 82 Further, 10% of the 

natural gas vehicles in Germany used compressed biomethane 

fuel rather than compressed natural gas methane. 83 In Sweden, 

50% of Stockholm city council’s car fleet of 800 vehicles ran on 

biomethane as of October 2012. 84 

02 



■■Bioenergy Industry 

In the United States, Amite BioEnergy (Mississippi) and 

Morehouse BioEnergy (Louisiana) produced a combined 

The broader bioenergy industry includes: biomass suppliers, 

total of 900,000 tonnes/year of pellets using biomass from 

processors, and firms that deliver biomass to end-users; 

sustainably managed forests. 90 Southern Company of Texas 

manufacturers and distributors of specialist biomass harvesting, 

handling, and storage equipment; and manufacturers of 

began commercial operation of its 100 MW Nacogdoches plant, 

becoming the largest dedicated biomass facility in the United 

appliances and hardware components for plants that convert 

States. Despite having a 20-year contract with Austin Energy, 

biomass fuels into usable forms and/or energy services. Some 

the plant is currently unable to compete with cheaper natural 

parts of the supply chain use technologies that are not exclusive 

gas-fired power plants, so it is not always operating. 91 

to biomass (such as forage crop and tree harvesters, trucks, 

and steam boilers). 

Torrefaction technology is moving from the demonstration 

phase to commercial scale. In addition to many small batchscale 

developers, several large companies—including Andritz 

(Austria), Thermya/Areva (France), Rotawave (U.K.), SunCoal 

(Germany), AVA-CO 2 

(Switzerland), and New Biomass Energy 

(USA)—aim to use efficient continuous manufacturing processes. 

Currently, the industry remains in its infancy and total 

global production capacity for torrefied biomass is well below 

200,000 tonnes/year. This material offers advantages over 

conventional wood pellets; to advance significantly, however, 

the poor performance observed in some European power 

plants will need to be overcome. 92 The International Biomass 

Torrefaction Council was created in December 2012 to promote 

the technology. 93 

■■Gaseous Biomass Industry 

Farm and community-scale biogas plants continue to be manufactured 

and installed for treating wet waste biomass products, 

especially in Europe where almost 12,000 plants (mostly CHP) 

operated in 12 countries in 2011. 94 In addition, 2,250 sewage 

sludge facilities are operating in Europe; approximately 2% of 

these plants upgrade the biogas to higher-quality biomethane 

The bio-refinery industry continues to grow because co- 

for use as a vehicle fuel or for injection into the gas grid. 95 In 

producing a number of products from biomass feedstocks 

December 2012, the Port of Amsterdam opened a new vehicle 

can maximise value and enhance profitability while reducing refilling facility where biogas from sewage sludge is upgraded 

greenhouse gas emissions. In the United States, there were using technology manufactured by BioGast. 96 

some 210 ethanol biorefineries operating in 2012 (down four 

Companies in Europe and elsewhere are finding innovative ways 

from 2011) that produced co-products including distillers 

to produce energy from their own waste. For example, in 2012 a 

grains for livestock feed, high-fructose corn syrup, citric acid, 

French multinational retailer announced plans to fuel its trucks 

lactic acid, and lysine. 85 

with biomethane produced from organic wastes arising from 

its stores, and a plant in Sweden became one of the world’s 

first to produce liquefied biogas (from local food waste) as an 

alternative for heavy-duty vehicles. 

■■Solid Biomass Industry 

97 

A large number of companies were actively engaged during 

2012 in supplying bioenergy plants that convert biomass to 

heat and electricity. In Europe, for example, the Finnish company 

Metso installed several 8 MW th bio-heat plants to replace 

oil in district heating schemes, and developed a 13.4 MW th heat 

plant in Värnamo, Sweden. 86 In the United Kingdom, as of early 

2013, Etsover Energy was developing three biomass CHP plants 

totalling 52 MW. 87 And Sweden completed its Pyrogrot demonstration 

project, which will use 270,000 tonnes of dry forest 

residues to produce around 160,000 tonnes/year of pyrolysis oil 

with a total energy content estimated at about 2.59 PJ. 88 

In Japan, JFE Engineering Corporation doubled its orders in 

2012 for designing, constructing, and operating bio-power 

plants using wood, dried sewage sludge, and MSW feedstocks, 

partly as a result of the new feed-in tariff (FIT) introduced in 

2011. 89 

32

■■Liquid Biofuels Industry 

The total annual capacity of the approximately 650 ethanol 

plants operating globally is around 100 billion litres, but many 

facilities are operating below nameplate capacity and others 

have closed due to fluctuating demand and concerns about 

the environmental sustainability of the product. Total U.S. plant 

capacity remained at around 52 billion litres/year in 2012, 

despite some temporary closures. 98 Globally, new ethanol 

plants continued to open, such as the 54 million litre/year 

Green Future Innovation Inc. plant that began production in the 

Philippines in January 2013. 99 

The number of operating biodiesel facilities is more difficult 

to assess as there are many small plants, often using waste 

cooking oils to produce biodiesel for local or personal vehicle 

use. As demand for biodiesel continues to increase, new plants 

are opening around the world. For example, Cargill (USA) commissioned 

its first biodiesel plant using soybean oil in Brazil, 

and Lignol Energy (Canada) invested USD 1.2 million to restart 

a 150 million litre/year biodiesel plant in Darwin, Australia. 100 

In the United States, 80 advanced biofuels companies (30 

of which were in California) were producing small volumes in 

2012. 101 Several companies claim to be close to commercial 

production. 102 In December 2012, KiOR (USA) sold about 

3,800 litres of bio-oil produced from the pyrolysis of cellulosic 

feedstocks in its new 500 tonne/day plant in Mississippi. 103 

In Europe, a “Leaders of Sustainable Biofuels” initiative was 

created to support the commercial development of advanced 

biofuels. 104 In Australia, two advanced biofuels demonstration 

plants using ligno-cellulosics and algae were being expanded to 

near-commercial scale as of early 2013. 105 

On the down side, IOGEN Energy Corporation (Canada), one 

of the early advanced biofuel companies to use the enzymatic 

hydrolysis process, and its recent owner Shell Oil, cancelled 

plans to develop a commercial-scale cellulosic ethanol plant in 

Manitoba. 106 Advanced biofuel producers in the United States 

also received a setback in early 2013, when the U.S. Court of 

Appeals ruled that the EPA must revise its cellulosic ethanol 

volume projections for 2012; leaving the 2013 standard in 

doubt. However, the larger category of advanced biofuels was 

left intact. 107 

The aviation industry has continued to evaluate closely the 

increasing uptake of advanced biofuels, including those 

produced from algae. Their interest stems from the current high 

dependence on petroleum fuels; uncertain long-term supplies; 

and the lack of other suitable fuel alternatives. Boeing, Airbus, 

and Embraer were collaborating on biofuel initiatives in 2012, 

and SkyNRG began buying pre-treated biofuels derived from 

used cooking oils and further refining them into aviation-grade 

fuel. 108 

Geothermal Heat and Power 

■■Geothermal Markets 

Geothermal resources provide energy in the form of direct 

heat and electricity, totalling an estimated 805 PJ (223 TWh) 

in 2012. Two-thirds of this output was delivered as direct heat, 

and the remaining one-third was delivered as electricity. 

Geothermal direct use continued to increase globally during 

2012. Direct use refers to direct thermal extraction for heating 

and cooling. A sub-category of direct use is the application 

of ground-source heat pumps (GHP), which use electricity to 

extract several units of thermal energy from the ground for 

every unit of electrical energy spent. 

Although there are limited data available on recent growth 

in direct use of geothermal energy, output is known to have 

grown by an average of 10% annually from 2005 through 2010; 

much of that growth was attributed to ground-source heat 

pumps, which experienced an average annual growth of 20%. 

Assuming that these growth rates have persisted in the last two 

years, global geothermal heat capacity reached an estimated 

66 GW th 

in 2012, delivering as much as 548 PJ of heat. 1 

GHP represents the largest and historically fastest-growing segment 

of geothermal direct use. In 2012, it reached an estimated 

50 GW th 

of capacity; this amounts to about three-quarters of 

estimated total geothermal heat capacity, and more than half 

of heat output (>300 PJ). i Of the remaining direct heat use 

(nearly half), the largest share goes to bathing and swimming 

applications, with smaller amounts for heating (primarily district 

heating), industrial purposes, aquaculture pond heating, 

agricultural drying, snow melting, and other uses. 2 

At least 78 countries used direct geothermal heating in 2012. 3 

The United States, China, Sweden, Germany, and Japan have 

the largest amounts of geothermal heating capacity, together 

accounting for about two-thirds of total global capacity. 4 China 

remains the presumptive leader in direct geothermal energy 

use (21 TWh in 2010), followed by the United States (18.8 

TWh in 2012), Sweden (13.8 TWh in 2010), Turkey (10.2 TWh 

in 2010), Iceland (7.2 TWh in 2012), and Japan (7.1 TWh in 

2010). 5 Iceland, Sweden, Norway, New Zealand, and Denmark 

lead for average annual geothermal energy use per person. 6 

About 90% of Iceland’s total heating demand is derived from 

geothermal resources. 7 

Heat pumps can generate heating or cooling and can be used 

in conjunction with combined heat and power (CHP) plants. 8 

Global installed heat pump capacity doubled between 2005 

and 2010, and it appears that this growth has continued in 

subsequent years. 9 In the EU, GHP capacity rose about 10% 

between 2010 and 2011, to a total of 14 GW th 

, led by Sweden 

(4.3 GW th 

), Germany (3 GW th 

), France (1.8 GW th 

), and Finland 

(1.4 GW th 

). 10 Canada had more than 100,000 systems in 

operation by early 2013, and the United States is adding about 

50,000 heat pumps per year. 11 In 2012, Ball State University in 

Indiana installed the largest U.S. ground-source closed-loop 

district geothermal system to heat and cool 47 buildings. 12 

02 

i The share of heat use is lower than the share of capacity for heat pumps because they have a relatively low capacity factor. This is due to the fact that heat 

pumps generally have fewer load hours than do other uses. As the share of heat pumps rises, output per unit of geothermal heat capacity is declining. Heat use 

is estimated with a coefficient of performance of 3.5. 


02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Geothermal Heat AND POWER 

Geothermal electricity generation, which occurs through kinetic 

conversion of high- or medium-temperature steam, is estimated 

to have reached at least 72 TWh in 2012. 13 Global geothermal 

electric generating capacity grew by an estimated 300 MW 

during 2012—with new capacity coming on line in the United 

States (147 MW), Indonesia (110 MW), Nicaragua (36 MW), and 

Kenya (7.5 MW)—bringing total global capacity to an estimated 

11.7 GW. 14 

The countries with the largest amounts of geothermal electric 

generating capacity are as follows: the United States (3.4 GW), 

the Philippines (1.9 GW), Indonesia (1.3 GW), Mexico (1.0 GW), 

Italy (0.9 GW), New Zealand (0.8 GW), Iceland (0.7 GW), and 

Japan (0.5 GW). 15 

The United States added 147 MW of geothermal generating 

capacity in 2012, increasing total capacity by 5% to 3.4 GW. 

This represents the second highest increase in geothermal 

power capacity over a calendar year since the 2005 decision to 

extend the production tax credit (PTC) to cover geothermal projects. 

16 Of particular note was the first facility to combine solar 

PV and geothermal generation at the Stillwater Geothermal 

Power Plant in Nevada. 17 This hybrid plant was recognised for 

enhancing thermal efficiency, improving production stability, 

and reducing investment risk. 18 By early 2013, the United 

States had 175 geothermal projects in development, representing 

more than 5.5 GW of potential, of which one-half might 

come to fruition in the coming decade. 19 

Indonesia has not added much capacity in recent years, but it 

added two 55 MW units at the Ulubelu station in 2012. 20 The 

country also announced a huge push for a 1,000 MW geothermal 

energy investment programme with significant international 

backing. 21 Indonesia initiated plans for a geothermal risk 

mitigation fund in 2011, which will provide loans to developers 

in an effort to jumpstart the industry. 22 The country targets 12.6 

GW of geothermal capacity by 2025, a significant step up from 

the current 1.3 GW. 23 Meanwhile, a 165 MW project on Bali was 

cancelled in the face of sustained local opposition that was 

based on both environmental and religious concerns. 24 

In late 2012, Nicaragua saw the completion of the second 36 

MW phase of the San Jacinto-Tizate project, having completed 

phase one a year earlier. The 72 MW project is large enough to 

supply the equivalent of 17% of Nicaragua’s electricity needs. 25 

In Kenya, the 2.5 MW Eburru wellhead plant was commissioned 

in early 2012, and a 5 MW modular wellhead unit came on line 

at a KenGen facility. 26 Kenya is Africa’s largest producer of 

geothermal power, with total installed capacity of more than 

200 MW by year’s end. 27 By May 2013, Ormat Technologies 

announced commercial operation of a new 36 MW unit at 

the Olkaria III complex. 28 The country is eyeing public-private 

partnerships to take on the development of an additional 560 

MW at Olkaria in 140 MW increments. 29 

Italy’s Enel Green Energy started operations in mid-2012 at 

its refurbished 17 MW Rancia 2 power plant in Tuscany. 30 In 

addition, construction has commenced on the 40 MW Bagnore 

4 power plant, also in Tuscany, at the projected cost of about 

USD 160 million (EUR 120 million), suggesting almost USD 4 

million (EUR 3 million) per MW of capacity. 31 

some of its estimated 700 MW of geothermal potential. 32 

However, the high exploratory costs associated with geothermal 

power present a significant hurdle for African countries. To 

address this problem, the World Bank established the Global 

Geothermal Development Plan to manage the risk of exploratory 

drilling for developing countries. In collaboration with 

Iceland, the World Bank also formed a “Geothermal Compact” 

to support surface-exploration studies and technical assistance 

for countries in Africa’s Rift Valley. 33 

The African Union Commission, the German Ministry for 

Economic Cooperation and Development (BMZ), and the 

EU-Africa Infrastructure Trust Fund have established a USD 

66 million (EUR 50 million) Geothermal Risk Mitigation Facility 

for Eastern Africa (Ethiopia, Kenya, Rwanda, Tanzania, and 

Uganda) to support surface studies and exploration drilling. 

Eight projects have been short-listed following the first application 

round in late 2012. 34 

Japan now had over 30 geothermal power projects under 

development as of early 2013. 35 However, the country has 

recently seen local opposition to geothermal projects in national 

parks in Fukushima and Hokkaido, due in part to commercial 

concerns about impacts on local hot springs. 36 Japan’s adoption 

of feed-in tariffs is expected to provide needed support for 

geothermal generation. 37 

Aside from the capacity addition in Nicaragua, other news 

from Latin America includes El Salvador’s long-term plans 

for an additional 90 MW of geothermal capacity and Chile’s 

completion of bids for exploration in various areas, with bidding 

companies committing USD 250 million. 38 Several islands 

in the Caribbean have plans to begin or increase their use of 

geothermal power (including Nevis, Dominica, and the U.K. 

territory of Montserrat), and drilling was set to start in 2013 in 

Montserrat. 39 Dominica signed a contract in 2012 for expanded 

drilling in hopes of completing a 10–15 MW plant by 2014. 40 

There is growing interest in Africa beyond Kenya to explore 

geothermal potential. For example, Rwanda recently committed 

funds to commence drilling, starting on a path to harness 

34

■■Geothermal Industry 

A large number of GHP manufacturers operate in the United 

States and Europe, with most European companies based in 

the main markets. 41 In Europe and the United States, there are 

two distinct classes of companies: general heating companies 

and electric heating specialists; and manufacturers of heat 

pump systems. 42 

In the power sector, the five leading turbine manufacturers 

in terms of total capacity in operation are Mitsubishi (Japan), 

Toshiba (Japan), Fuji (Japan), Ansaldo/Tosi (Italy), and Ormat 

(Israel), which together account for well over 80% of capacity 

currently in operation around the world. 43 In addition, several 

companies now manufacture small-scale geothermal power 

units that can be built offsite and then integrated into a plant’s 

design for production. 44 

Technology continued to advance in the power sector during 

2012. In the United States, a government-supported research 

project made progress on enhanced geothermal systems (EGS) 

technology, which extracts heat from engineered reservoirs 

through fluid injection and rock stimulation. The project 

demonstrated the equivalent of 5 MW of steam at The Geysers 

in California. 45 In early 2013, AltaRock Energy announced that 

it had created multiple stimulation zones for a single wellbore 

at the Newberry EGS demonstration site. The potential benefit 

is a significant reduction in the cost of production from an EGS 

field. 46 Finally, in April 2013, Ormat Technologies, the U.S. 

Department of Energy, and GeothermEx successfully produced 

an additional 1.7 MW from an existing field in Nevada using EGS 

technology. This is the first EGS system to be grid connected. 47 

The year 2012 saw another first, with co-production of geothermal 

power at Nevada’s Florida Canyon gold mine. 48 Another 

U.S. research project showed promise for extracting significant 

quantities of lithium from geothermal brine; the metal is a 

critical component in the lithium battery technology that is 

used extensively in electric vehicles. 49 

In Iceland, Carbon Recycling International started operations at 

a groundbreaking plant that produces methanol by combining 

electrolytic hydrogen and carbon dioxide from a geothermal 

power plant. The product is a fully renewable fuel suitable for 

blending with gasoline. 50 

Geothermal power projects take 5–7 years to develop from 

resource discovery to commercial development, and, as with 

oil and mining projects, the size of the resource is unconfirmed 

until drilling takes place. Long development times and the 

upfront risk and exploration often force geothermal companies 

to fund the work required to prove the resource. Tight capital 

and policy uncertainties in some countries, such as the United 

States, have made it challenging for developers to attract 

project funding. 51 Moreover, no two project sites are the same, 

and each plant must be designed to project-specific conditions. 

52 Nonetheless, once the feasibility of a resource has been 

established, the probability of project success is better than 

■■Hydropower Markets 

80%. 53 Hydropower 

An estimated 30 GW of new hydropower capacity came on line 

in 2012, increasing global installed capacity by about 3% to an 

estimated 990 GW. 1 i The top countries for hydro capacity are 

China, Brazil, the United States, Canada, and Russia, which 

together account for 52% of total installed capacity. 2 (See 

Figure 9.) Ranked by generation, the order is the same except 

that Canada’s generation exceeds that of the United States, 

where hydropower is more load-following. 3 Globally, hydropower 

generated an estimated 3,700 TWh of electricity during 

2012, including approximately 864 TWh in China, followed by 

Brazil (441 TWh), Canada (376 TWh), the United States (277 

TWh), Russia (155 TWh), Norway (143 TWh), and India (>116 

TWh). 4 

China again led the world for new capacity additions, followed 

by Turkey, Brazil, Vietnam, and Russia. 5 (See Figure 10.) China 

installed 15.5 GW of new capacity to end the year with almost 

229 GW of total installed hydropower capacity, and 20.3 GW of 

pumped storage capacity. 6 The country’s hydropower output 

was 864 TWh during the year, almost a third more than the 

2011 total, due to increased capacity and improved hydrological 

conditions. 7 

In China, an 812 MW Francis turbine generator, the world’s 

largest unit, was added to the Xianjiaba plant, which will total 

6.4 GW when completed. 8 It will be the country’s third largest 

hydropower facility, after the Three Gorges plant (22.5 GW) 

and the Xiluodu plant (13.9 GW when completed). 9 The Three 

Gorges achieved full capacity after the last of 32 generators 

began operation in July, and reached a record output of 98.1 

TWh in 2012. 10 In its current five-year plan, China targets 290 

GW of installed capacity by 2015, while striving to improve 

resettlement policies for affected local populations and to 

strengthen ecological protection. 11 (See Sidebar 3.) 

Turkey is increasing its hydropower capacity at a rapid rate to 

address chronic shortages of electricity and frequent power 

outages. 12 Approximately 2 GW was added in 2012, to end 

the year with about 21 GW installed. 13 Construction continued 

on the 1.2 MW Ilisu Dam on the Tigris River, while scientists 

prepared for the removal of cultural monuments in areas that 

will be submerged. 14 

Brazil placed 1.86 GW of hydropower into operation in 2012, 

including 394 MW of reported small-scale (

02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Hydropower 

Hydropower 

Figure 9. Hydropower Global Capacity, Shares of Top Five Countries, 2012 

Rest 

of W orld 48% China 23% 

Brazil 8.5% 

Source: 

See Endnote 2 


United States 7.9% 

Canada 7.8% 

Russia 4.6% 

Figure 10. Hydropower Global NET Capacity Additions, Shares of Top Five Countries, 2012 

Rest of World 26% 

Source: 

See Endnote 5 


Turkey 7% 

Vietnam 6% 

Brazil 6% 

Russia 3% 

China 52% 

Vietnam added at least 1.8 GW of new capacity in 2012 to 

raise its total capacity to 12.9 GW. A significant portion of this 

increase was attributable to Vietnam’s Son La plant. The final 

two 400 MW turbines were installed to complete the 2.4 GW 

project, reportedly the largest hydropower project in Southeast 

Asia. 20 

In Russia, three 333 MW units at its Boguchanskaya hydropower 

plant were commissioned in late 2012 and one in early 

2013, maintaining the country’s total operating capacity at 46 

GW. 21 Following a catastrophic accident in 2009, the 6.4 GW 

Sayano-Shushenskaya plant, the country’s largest hydropower 

facility, is under continuing repairs that will see 10 new turbines 

installed by 2014. 22 In all, at least 3.4 GW of capacity was installed 

during 2012, although net capacity additions were lower. 23 

Elsewhere, Mexico brought its 750 MW La Yesca hydropower 

plant into full operation in late 2012 for a country total of 

11.5 GW. 24 The plant is said to have the world’s tallest concrete-faced 

earthfill dam, at 220 metres. 25 To the north, Canada 

commissioned the 200 MW Wuskwatim plant in Manitoba, 

and Hydro-Québec completed the 768 MW Eastmain 1-A 

powerhouse, to be followed by the neighbouring 150 MW 

Sarcelle powerhouse in 2013. 26 India added about 750 MW 

of hydropower capacity, of which 157 MW was categorised as 

small-scale (

Sidebar 3. Sustainability Spotlight: Hydropower 

Hydropower dates back more than 2,000 years to when the 

Greeks used water wheels to grind grain. Over the centuries, it 

has played an important role in providing mechanical energy 

and, more recently, electricity, supporting human and economic 

development. 

Hydropower dams, which provide large-scale water storage, 

can provide protection from hydrological variability (including 

floods and droughts) and increase irrigation of agricultural 

lands, while potentially providing a means of transportation and 

recreation. Specific applications of hydropower offer significant 

potential for reducing carbon emissions in the near and long 

terms. Hydropower is used by electric grid operators to provide 

baseload power and to balance electricity supply and demand, 

and it plays an increasingly important role in supporting growing 

shares of variable renewable resources in power systems. 

(See Sidebar 3, GSR 2012.) 

Notwithstanding these benefits, there is ongoing debate 

about hydropower’s sustainability. The environmental and 

social impacts of hydro projects include: potential impacts 

on hydrological regimes, sediment transport, water quality, 

biological diversity, and land-use change, as well as the 

resettlement of people and effects on downstream water users, 

public health, and cultural heritage. The gravity of the particular 

impacts varies from project to project, as does the scope for 

their avoidance or mitigation. Also, the opportunity to maximise 

positive impacts (beyond the renewable electricity generated) 

varies from site to site. 

A number of technological developments offer the potential 

to improve hydropower’s environmental sustainability. These 

include certain locally effective fish passages; both large and 

small “fish-friendly” turbine technologies that reduce downstream 

passage mortality; models for optimising environmental 

flows; and design changes to minimise or avoid discharges of 

lubricating oil from turbine equipment (or the use of biodegradable 

oils). Project planning is beginning to incorporate greater 

understanding of dynamic climate and environmental impacts, 

in addition to traditional concerns such as revenue generation 

and flood control. 

Some reservoir management plans incorporate upstream 

land-use management practices in recognition of associated 

sedimentation. Other practices include the identification of 

“no-go” project areas, and the protection of other areas (e.g., 

through “river offsets”) to compensate for project impacts 

such as biodiversity loss. In Norway, for example, the National 

Master Plan for hydropower sorts projects into acceptable/ 

not acceptable categories and protects a large number of the 

nation’s rivers. Prioritising existing water storage facilities, or 

new multipurpose facilities (driven by development, climate 

change mitigation, and water supply and irrigation concerns) for 

hydropower capacity expansion can offer a means of reducing 

associated impacts while broadening related benefits. 

With regard to social impacts, model projects have shown 

increased recognition of the potential risks associated with 

hydropower and identification of opportunities to avoid them. 

Although interactions with project-affected communities typically 

focus on mitigation and compensation, some examples 

have shown a shift to benefit sharing, with efforts to optimise 

potential positive impacts through engagement with affected 

communities and collaborative initiatives to improve local 

living standards. In instances when a decision is made to move 

populations, some developers have begun to engage communities 

in planning for their resettlement. Approximately 10% of 

the USD 500 million Theun Hinboun Expansion Project in Laos 

was allocated to address resettlement and social issues after a 

long participatory process involving a variety of stakeholders, 

although the overall resulting impact on resettled communities 

remains a controversial subject. 

Since the World Commission on Dams report was released 

in 2000, both the industry and international agencies have 

developed a number of standards, principles, and guidelines 

to optimise sustainability. These include the World Bank 

Safeguards, Equator Principles, and Hydropower Sustainability 

Assessment Protocol. The International Finance Corporation 

(IFC) Performance Standards and Equator Principles require 

developers to obtain Free, Prior, and Informed Consent (FPIC) 

for projects that affect indigenous peoples who are closely 

tied to their lands and natural resources through traditional 

ownership or customary use. The voluntary Hydropower 

Sustainability Assessment Protocol aims to guide sustainability 

in the hydropower sector by measuring a project’s performance 

throughout its life cycle, treating environmental and social 

issues at parity with other considerations. 

Better compliance, further development, and wider adoption of 

these tools offer the potential to ensure that international practices 

are applied locally, irrespective of variations in national 

regulations, while providing common frameworks around which 

project stakeholders can engage in dialogue about specific 

projects and their impacts. 

The “Sustainability Spotlight” sidebar is a regular feature of the 

Global Status Report, focusing on sustainability issues regarding 

a specific renewable energy technology or related issue. 

02 


37

02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Hydropower 

initial export of 100 MW of hydropower to displace Sudanese 

thermal generation. 29 In addition, the Ethiopia-Kenya Electricity 

Highway was approved for construction. The 2,000 MW link 

is expected to allow Ethiopia to export a portion of its large 

hydropower resources to the larger supply-constrained East 

Africa region. 30 

Another region pursuing improved interconnection is Central 

America. The Central American Electrical Interconnection 

System, which was nearing completion in early 2013, stretches 

nearly 1,800 kilometres from Guatemala to Panama. This 

interconnection is expected to enable the region to harness 

more of its hydroelectric resources. 31 

Hydropower projects in developing countries have historically 

benefitted from the Clean Development Mechanism (CDM) 

but may face challenges due to a significant decline in prices 

of carbon credits in 2012 and early 2013. 32 Meanwhile, the 

United Nations moved to set up two regional centres in Africa, 

one in Togo and another in Uganda, to provide assistance in 

development of CDM projects. 33 Currently, less than 1% of CDM 

pipeline projects in the hydropower sector are located in Africa, 

while the majority is in China. 34 

Pumped storage hydro continues to grow in significance, largely 

due to its ability to provide ancillary services as shares of variable 

renewable generation rise. About 3 GW of pumped storage 

capacity was added in 2012, for a total of 138 GW globally. 35 

Europe added 675 MW to push the regional total above 45 GW, 

and China accounted for just over half of the 2012 addition, 

bringing 1.5 GW of pumped storage online. 36 China’s Fengning 

station in Hebei Province began construction in 2012; the 3.6 

GW project could be the world’s largest pumped storage facility 

when completed. 37 

■■Hydropower Industry 

The hydropower industry is seeing growing prominence of 

joint-venture business models in which local and international 

partnerships share risks and benefits. 38 For example, a 

public-private partnership brought the 250 MW Bujagali project 

in Uganda to completion in 2012. 39 The International Finance 

Corporation (IFC – World Bank Group) joined Korea Western 

Power Co. to develop at least one project in Laos. 40 In Vietnam, 

local and international parties, including Samsung of Korea, 

joined in a contract to build the Trung Son plant for a subsidiary 

of Electricity of Vietnam. 41 

As the size of large projects increases, manufacturers are 

developing and testing ever-larger turbine-generator units, 

including 1,000 MW Francis units produced by Tianjin Alstom 

(China) and Power Machines (Russia). 42 Having delivered four 

record 812 MW Francis turbine generators to the Xiangjiaba 

plant, Alstom also committed to USD 130 million (EUR 100 

million) investment in hydropower development needs within 

China, including the Global Technology Center in Tianjin. The 

interest of major international hydropower companies staking 

manufacturing and research ground in China is believed to 

reflect the significance and stable growth of the country’s 

hydropower development pipeline. 43 

Companies are investing elsewhere as well. In early 2013, 

Alstom opened the new headquarters of its hydropower technology 

centre in Grenoble, France, following years of upgrades 

to the site and the doubling of its hydraulic test laboratory. 44 

In Russia, Alstom (France) joined with RusHydro (Russia) to 

commence construction of a joint hydropower equipment manufacturing 

plant. 45 After heavy investment in new manufacturing 

facilities in recent years, Voith Hydro (Germany) increased 

its emphasis on research and development, particularly for 

pumped storage technology. 46 

IMPSA of Argentina, which holds a 30% market share in Latin 

America’s hydropower sector, opened a new factory that 

doubles its production capacity in order to meet the region’s 

sustained demand. 47 In Japan, Toshiba announced the 

construction of a new thermal, hydro, and renewable power 

engineering centre in anticipation of growing demand for 

thermal and hydropower generation equipment in emerging 

economies. 48 

Manufacturers are also striving to advance pumped storage 

technology, pursuing requisite flexibility and efficiency through 

development of variable-speed units and other innovations. 49 

Electricité de France plans to upgrade its 485 MW La Cheylas 

plant to variable speed. The consortium behind the project 

estimates that European pumped storage facilities could 

provide another 10 GW of regulation capability if converted to 

variable-speed operation. 50 

The world’s leading hydropower technology and manufacturing 

companies are Alstom, Andritz (Austria), IMPSA, and Voith, 

together representing more than 50% of the global market. 51 

Other major manufacturers include BHEL (India), Dongfang 

(China), Harbin (China), Power Machines, and Toshiba. 

38

Ocean Energy 

■■Ocean Energy Markets 

After the introduction in 2011 of a 254 MW tidal power project 

in South Korea and a much smaller 300 kW wave energy facility 

in Spain, little new capacity was added in 2012. Commercial 

ocean energy capacity remained at about 527 MW by year’s 

end, most of this being tidal power facilities, with additional 

projects in the pipeline. 1 

In September, the Cobscook Bay Tidal Energy Project off the 

U.S. coast of Maine began delivering electricity to the grid. 2 

The Ocean Renewable Power Company’s (USA) TidGen device 

has a peak output of 180 kW. 3 Across the Atlantic, off the coast 

of Portugal, AW Energy (Finland) deployed three 100 kW wave 

energy converters, which they call the WaveRoller. These 

converters are designed for near-shore applications and sit on 

the ocean floor at a depth of 8–20 meters. 4 

Other notable ocean energy facilities in operation around the 

world at the end of 2012 include France’s Rance tidal power 

station (240 MW), which has been in operation since 1966; 

tidal plants in Nova Scotia, Canada (20 MW) and in Zhejiang, 

China (3.9 MW); and a collection of tidal current and wave 

energy projects in the United Kingdom (about 9 MW). 5 

In addition to its Sihwa tidal power plant, which came on line in 

mid-2011, South Korea has planned to construct several other 

tidal plants to achieve national green growth targets. As of early 

2013, however, the status of these projects is uncertain. The 

country’s 6th Electricity Plan, issued in early 2013, includes the 

development of the Gangwha (813 MW) and Garorim (520 MW) 

tidal power plants, but public opposition on ecological grounds 

may prove to be a hindrance. 6 

In the United States, Ocean Power Technologies (USA) received 

a license in 2012 for a 1.5 MW wave power station off the coast 

of Oregon, with deployment of the first 150 kW PowerBuoy 

(wave energy converter) set for 2013. 7 Having received requisite 

licenses in 2012, Verdant Power (USA) is now in the build-out 

phase of its Roosevelt Island Tidal Energy project in New York, 

which envisions a 1 MW array of up to 30 tidal turbines in the 

East River. 8 

In the United Kingdom, the Severn River has long been eyed 

as a potential site for a tidal barrage, but it has faced the dual 

hurdle of the high economic cost and potential impact on 

wildlife. The topic resurfaced in 2012 with a new proposal to 

build a USD 50 billion (GBP 30 billion), 6.5 GW barrage across 

the 18-kilometre wide Severn estuary south of Cardiff, all with 

private funds. If constructed, the scheme could deliver 5% of 

the U.K.’s electricity needs. 9 

The absence of major new commercial project deployments 

must be considered in the context of this industry still being in 

relative infancy. There are numerous demonstration projects 

in the field or soon to be deployed, particularly in the United 

Kingdom. Ocean energy's slow but steady march towards 

commercial projects is seen as positive, with particular nearterm 

promise for tidal power technology. 10 

■■Ocean Energy Industry 

The continental shelf of the United Kingdom is a key testing 

ground for emerging ocean power technologies. Off the coast 

of Orkney, the European Marine Energy Center (EMEC) has a 

number of wave and tidal devices undergoing testing. In 2012, 

the U.K.’s National Renewable Energy Centre (Narec) opened 

a rig for testing of tidal devices under simulated conditions, 

providing valuable information to technology developers. 11 

These facilities, and the ocean energy companies carrying 

out research and development, receive support from the U.K. 

government and from regional authorities, including a USD 

167 million (GBP 103 million) investment fund launched by the 

Scottish Government, mainly in support of ocean energy. 12 In 

Ireland, despite economy-driven funding cuts in recent years, 

research activities at maritime research facilities are expected 

to expand in 2013, including work on new grid connection for 

offshore devices. 13 

The expertise gathered in the fertile waters off Scotland is 

spawning test facilities elsewhere. EMEC has entered into 

agreement with counterparts in Taiwan, Japan, China, South 

Korea, the United States, and Canada to provide technical 

assistance on ocean power test sites. 14 

Government assistance would not go far without the leverage of 

funding from private enterprise. As the industry works its way 

through the long process of developing and testing different 

technologies to harness wave and tidal power, each entity 

must secure sustained funding. This generally occurs though 

partnerships and joint ventures, or through capital injection via 

acquisition by major corporations. 

Major power technology corporations have a growing presence 

in the ocean energy sector. In 2012, Alstom (France) acquired 

Tidal Generation Limited (U.K.), a former subsidiary of Rolls 

Royce specialising in tidal turbine technology. Later in the year, 

Alstom terminated licencing agreements with Clean Current 

(Canada), which develops in-stream tidal turbines. 15 In 2011, 

Alstom had taken a 40% share in the Scottish AWS Ocean 

Energy Ltd. 16 

02 


02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Ocean Energy 

Andritz (Austria) increased its stake to a majority share in the 

Norwegian ocean energy company Hammerfest Strøm AS, 

now known as Andritz Hydro Hammerfest. 17 Iberdrola (Spain) 

also holds a share in the company, which has a tidal turbine 

operating at EMEC in Scotland. 18 Marine Current Turbines (U.K.) 

is now wholly owned by Siemens (Germany). 19 The company 

recently celebrated five years of operating its SeaGen turbine, 

the world’s largest grid-connected tidal stream turbine, off the 

coast of Northern Ireland. 20 

A joint venture between Vattenfall (Sweden) and Pelamis 

Wave Power (Scotland) to develop a 10 MW wave farm off the 

west coast of Shetland will be facilitated by an approved 370 

MW wind farm on the island, which paves the way for needed 

interconnection to mainland Scotland. 21 This may indicate a 

potential synergy between ocean energy and other near-shore 

renewable energy projects. Vattenfall had noted previously that 

the project was predicated on such interconnection. 22 

Another joint venture, between Atlantis Resources Corporation 

(U.K.), investment bank Morgan Stanley, and power generator 

International Power (U.K.), hopes to start work on the 400 MW 

Meygen tidal power project in northern Scotland’s Pentland 

Firth in 2013. 23 The project would use Atlantis Resources’ AR 

1000 1 MW tidal turbine that completed testing at the Narec 

testing grounds last year, as well as turbines from Andritz Hydro 

Hammerfest. 24 With USD 5 million in new funding from the 

Canadian government, Atlantis has joined partners to deploy 

one of its turbines on Canada’s Atlantic coast in the Bay of 

Fundy, which is famous for having the highest tidal range in the 

world, at 17 metres. 25 

Solar Photovoltaics (PV) 

■■Solar PV Markets 

The solar photovoltaic (PV) market saw another strong year, 

with total global operating capacity reaching the 100 GW 

milestone in 2012. 1 The market was fairly stable relative to 

2011, with slightly less capacity brought on line but likely higher 

shipment levels, and the more than 29.4 GW added represented 

nearly one-third of total global capacity in operation at 

year’s end. 2 (See Figure 11 and Reference Table R5.) The thin 

film market share fell from 15% in 2011 to 13% in 2012. 3 

Eight countries added more than 1 GW of solar PV to their grids 

in 2012, and the distribution of new installations continued to 

broaden. 4 The top markets—Germany, Italy, China, the United 

States, and Japan—were also the leaders for total capacity. 5 

By year’s end, eight countries in Europe, three in Asia, the 

United States, and Australia had at least 1 GW of total capacity. 6 

The leaders for solar PV per inhabitant were Germany, Italy, 

Belgium, the Czech Republic, Greece, and Australia. 7 

Europe again dominated the market, adding 16.9 GW and 

accounting for about 57% of newly installed capacity, to end 

2012 with 70 GW in operation. 8 But additions were down from 

22 GW and more than 70% of the global market in 2011; the 

region’s first market decline since at least 2000 was due largely 

to reduced incentives (including FIT payments) and general 

policy uncertainty, with the most significant drop in Italy. 9 

Regardless, for the second year running the EU installed more 

PV than any other electricity-generating technology: PV represented 

about 37% of all new capacity in 2012. 10 As its share of 

generation increases, PV is starting to affect the structure and 

management of Europe’s electricity system, and is increasingly 

facing barriers that include direct competition with conventional 

electricity producers and saturation of local grids. 11 

Italy and Germany both ended 2012 with more solar PV than 

wind capacity in operation, together accounting for almost half 

of the global total. 12 (See Figure 12.) Germany added a record 

7.6 GW, up just slightly over the previous two years, increasing 

its total to 32.4 GW. 13 Solar PV generated 28 TWh of electricity 

in Germany during 2012, up 45% over 2011. 14 Italy reached a 

total capacity of 16.4 GW; however, the 3.6 GW brought on line 

was far lower than additions in 2011. 15 

Other top EU markets included France (1.1 GW), the United 

Kingdom (0.9 GW), Greece (0.9 GW), Bulgaria (0.8 MW), and 

Belgium (0.6 MW). 16 All saw total operating capacity increase 

30% or more, with Bulgaria’s capacity rising sixfold, although 

France’s market was down relative to 2011. 17 

Beyond Europe, about 12.5 GW was added worldwide, up from 

8 GW in 2011. 18 The largest markets were China (3.5 GW), the 

United States (3.3 GW), Japan (1.7 GW), Australia (1 GW), and 

India (almost 1 GW). 19 Asia (7 GW) and North America (3.6 GW) 

followed Europe for capacity added; by year’s end, Asia was 

rising rapidly and was second only to Europe for total operating 

capacity. 20 

U.S. capacity was up nearly 85% in 2012 to 7.2 GW. 21 California 

had a record year (>1 GW added) and was home to 35% of total 

U.S. capacity. 22 But PV is spreading to more states, driven by 

falling prices and innovative financing and ownership models 

such as solar leasing, community solar investments, and 

40

SOLAR PHOTOVOLTAICS (PV) 

Figure 11. Solar PV Global Capacity, 1995–2012 

Gigawatts 

100 

90 

80 

70 

71 

100 

60 

50 

40 

30 

20 

10 

0 

40 

24 

16 

5.4 7 10 

0.9 1.2 1.4 1.8 2.2 2.8 4.0 

0.6 0.7 0.8 

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

Source: 

See Endnote 2 


Figure 12. Solar PV Global Capacity, Shares of Top 10 Countries, 2012 

Rest of World 6.7% 

Other EU 7.4% 

Czech Republic 2.1% 

Germany 32% 

Australia 2.4% 

Belgium 2.6% 

France 4.0% 

Spain 5.1% 

Italy 16% 

Japan 6.6% 

China 7.0% 

United States 7.2% 

Global Total = 

~100 GW 

Source: 

See Endnote 12 


Figure 13. Market Shares of Top 15 Solar PV Module Manufacturers, 2012 

First Solar (USA) 5.3% 

Canadian Solar (Canada) 4.6% Trina Solar (China) 4.7% 

Sharp (Japan) 3.0% 

SunPower (USA) 2.6% 

Kyocera (Japan) 2.1% 

REC (Norway) 2.0% 

Others 50% 

Yingli Green Energy (China) 6.7% 

Suntech Power (China) 4.7% 

JA Solar (China) 2.8% 

Jinko Solar (China) 2.6% 

Hareon Solar (China) 2.5% 

Hanwha-SolarOne (China) 2.5% 

ReneSola (China) 2.1% 

Tianwei New Energy (China) 2.0% 

Source: 

See Endnote 

75 for this 

section. 

02 

Based on 35.5 GW produced in 2012. 


02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Solar Photovoltaics 

third-party financing. 23 On the negative side, battles are 

emerging around the future of net metering due to utility 

concerns about potential stranded costs of existing generating 

assets and related infrastructure. 24 Utility installations represented 

54% of additions and accounted for 2.7 GW of U.S. 

capacity by year’s end, with more than 3 GW under construction. 

25 Utility procurement is slowing, however, as many utilities 

approach their Renewable Portfolio Standard (RPS) targets. 26 

China doubled its capacity, ending 2012 with about 7 GW, but 

below expectations for the year. 27 By the fourth quarter, China 

accounted for more than a third of global panel shipments, 

surging past Germany in response to government efforts to create 

a market for the glut of domestic solar panels. 28 The market 

is dominated by large-scale ground-mounted systems, many of 

which are in western China, far from load centers. 29 But national 

policies aim to encourage distributed, building-mounted 

projects as well. 30 

Total capacity in Japan rose 35% to exceed 6.6 GW, driven 

by the new feed-in tariff (FIT); by the end of 2012, solar PV 

accounted for 90% of capacity certified in the FIT system. 31 

Japan’s rapid demand increase has led to significant investment 

in PV and a rush into projects that are pushing up land 

prices. 32 

Australia ended the year with nearly 2.4 GW, up 70% over 

2011. 33 By early 2012, an estimated one in five homes in South 

Australia had rooftop PV. 34 India also saw notable growth, with 

capacity increasing more than fivefold to 1.2 GW. 35 

Just as some traditional EU markets are starting to slow, falling 

prices make it easier for PV to compete in new markets across 

the globe. Namibia and South Africa brought large solar parks 

on line 2012, and Chinese companies have begun building 

projects in at least 20 African countries to help spur demand for 

Chinese exports. 36 

Israel is the only country in the Middle East with a significant 

market. 37 But in Saudi Arabia and across the Middle East and 

North Africa (MENA) region, interest in solar power is being 

driven by rapid increases in energy demand, a desire to free up 

more crude oil for export, and high insolation rates. 38 

The Southeast Asia region has been dominated by Thailand, 

but markets are starting to bloom elsewhere. 39 And driven by 

favourable policies, demand in Latin America is shifting from 

small off-grid and niche applications to large-scale deployment 

in the commercial and industrial sectors—especially in Brazil, 

Chile, and Mexico. 40 

Interest in off-grid systems is growing, particularly in developing 

countries. 41 (See Rural Renewable Energy section.) In 2012, 

one of the world’s largest off-grid systems was completed in the 

South Pacific territory of Tokelau, to provide 100% of electricity 

needs. 42 Off-grid projects represent a significant portion of 

installed PV capacity in some developed countries, including 

Australia, Israel, Norway, Sweden, and the United States. 43 

However, the vast majority of PV capacity today is grid-connected, 

with off-grid accounting for an estimated 1% of the 

market, down from more than 90% two decades ago. 44 

The market for building-integrated PV (BIPV)—solar panels that 

double as shingles, walls, or other building materials—represents 

less than 1% of solar PV capacity being installed worldwide, 

amounting to an estimated 100 MW added in 2012. 45 

The economic downturn has slowed construction, dampening 

BIPV growth. 46 Europe is the largest market with more than 50 

companies active in the sector. 47 

Also on the rise in some countries is interest in community-owned 

PV. Eight U.S. states have policies to encourage 

community solar projects; by late 2012, community projects 

accounted for an estimated 60 MW of U.S. capacity. 48 In 

Australia, the Melbourne LIVE Community Power Programme 

enables community members who cannot install their own 

rooftop systems to invest in the project. 49 

At the same time, the number and scale of large PV projects 

continues to increase. By early 2013, about 90 plants in operation 

were larger than 30 MW, and some 400 had at least 10 MW 

of capacity. 50 The world’s 50 biggest plants reached cumulative 

capacity exceeding 4 GW by the end of 2012, and at least 12 

countries across Europe, North America, and Asia had solar PV 

plants over 30 MW. i 51 More than 20 of these facilities came on 

line in 2012, including the world’s two largest: a 250 MW thin 

film plant in the U.S. state of Arizona and a 214 MW plant in 

Gujarat, India. 52 Germany held on to its lead for total capacity 

of facilities larger than 30 MW, with a cumulative 1.55 GW in 

operation by year’s end, followed by the United States, France, 

India, Ukraine, China, and Italy. 53 Several projects are planned 

around the world that range from 50 to 1,000 MW in scale. 54 

The concentrating PV (CPV) market is still comparatively tiny, 

but interest is increasing due greatly to higher efficiency levels 

in locations with high insolation and low moisture. 55 The world’s 

first multi-megawatt projects came on line in 2011, and, by 

mid-2012, more than 100 plants totalling as much as 100 MW 

were operating in at least 20 countries worldwide. 56 The United 

States has the largest capacity thanks to a 30 MW Colorado 

i It is telling of the rapid changes in PV markets that the 2011 edition of the GSR reported on utility-scale projects of more than 200 kW in size, and the 2012 

edition on projects larger than 20 MW. 

42

plant that started operating in 2012, followed by Spain, China 

and Chinese Taipei/Taiwan, Italy, and Australia. 57 CPV is also 

spreading to new markets in North Africa, the Middle East, and 

South America. 58 

Solar PV is starting to play a substantial role in electricity 

generation in some countries, meeting an estimated 5.6% of 

national electricity demand in Italy and about 5% in Germany 

in 2012, with far higher shares in both countries during sunny 

months. 59 By year’s end, PV capacity in the EU was enough 

to meet an estimated 2.6% of total consumption, and global 

capacity in operation was enough to produce at least 110 TWh 

of electricity per year. 60 

■■Solar PV Industry 

As in 2011, 2012 was a good year for solar PV distributors, 

installers, and consumers, but cell and module manufacturers 

struggled to survive let alone make a profit. An aggressive 

capacity build-up in 2010 and 2011, especially in China, 

resulted in excess production capacity and supply that, 

alongside extreme competition, drove prices down further in 

2012, yielding smaller margins for manufacturers and spurring 

continued industry consolidation. 61 Low prices also have 

challenged many thin film companies and the concentrating 

solar industries, which are struggling to compete. 62 

The average price of crystalline silicon solar modules fell by 

30% or more in 2012, while thin film prices dropped about 

20%. 63 Installed system costs are also falling, although not as 

quickly, and they vary greatly across locations. From the second 

quarter of 2008 to the same period in 2012, German residential 

system costs fell from USD 7.00/Watt (W) to USD 2.20/W; by 

contrast, average prices for U.S. residential systems had fallen 

to USD 5.50/W. 64 

Approximately 31.9 GW of crystalline silicon cells and 35.5 GW 

of modules were produced in 2012, down slightly from 2011. 65 

Despite several plant closures, year-end module production 

capacity increased in 2012, with estimates ranging from below 

60 GW to well over 70 GW. 66 China’s production capacity alone 

exceeded the global market. 67 Thin film production declined 

nearly 15% in 2012, to 4.1 GW, and its share of total global PV 

production continued to fall. 68 

Over the past decade, leadership in module production has 

shifted from the United States, to Japan, to Europe, to Asia. 69 

By 2012, Asia accounted for 86% of global production (up from 

82% in 2011), with China producing almost two-thirds of the 

world total. 70 Europe’s share continued to fall, from 14% in 2011 

to 11% in 2012, and Japan’s share dropped from 6% to 5%. 71 

The U.S. share remained at 3%; thin film accounted for 29% 

of U.S. production, down from 41% in 2011. 72 Europe was still 

competitive for polysilicon production, however, and the United 

States was the leading producer. 73 

The top 15 solar PV module manufacturers accounted for 

half of the 35.5 GW produced globally; 11 of these companies 

hailed from Asia. 74 Yingli (China) jumped ahead of both Suntech 

(China) and First Solar (USA) to land in first position. First Solar 

held its number-two spot, and Suntech fell to fourth after Trina 

Solar (China). There was also much shifting in the ranks among 

the other top players. 75 (See Figure 13, and Figure 13 in GSR 

2012.) 

Market consolidation continued in 2012. On the project development 

side, merger and acquisition activity was driven by 

large companies wanting to buy into project pipelines; among 

manufacturers, even global companies with solid financing 

suffered. 76 The string of failures and bankruptcies that began 

in 2011 continued into 2013, due to overcapacity of module 

production. 77 

More than 24 U.S. solar manufacturers have left the industry 

in recent years, and, by one estimate, about 10 European and 

50 Chinese manufacturers went out of business during 2012. 78 

Even “tier 1” Chinese companies like Yingli and Trina idled 

plants and struggled to stay afloat. 79 By year’s end, China’s 10 

largest manufacturers had borrowed almost USD 20 billion 

from state-owned banks, and Suntech Power’s main operating 

subsidiary declared bankruptcy in early 2013. 80 In India, 90% of 

domestic manufacturing had closed or filed for debt restructuring 

by early 2013. 81 

Other Asian companies were busy buying up next-generation 

U.S. solar technology, and Hanwha Group (South Korea) bought 

the bankrupt Q-Cells (Germany), the top module manufacturer 

in 2008. 82 First Solar (USA) and Panasonic (Japan) closed 

production lines and/or suspended plans for new factories; GE 

(USA) halted construction on its thin film factory in Colorado 

and announced plans to return to R&D; Bosch Solar (Germany) 

announced that it would stop making cells and panels in 2014; 

and Siemens (Germany) announced its exit from the solar 

business. 83 Most companies that remained in established 

markets were investing in improving manufacturing processes, 

rather than R&D, to reduce their costs. 84 

Even as some manufacturers idled production capacity or 

closed shop, others opened facilities and aggressively sought 

new markets—particularly in the developing world. 85 New 

plants opened around the globe in 2012, from Europe to Turkey, 

Kazakhstan to Japan, and Malaysia to the United States. 86 

Ethiopia’s first module-manufacturing facility (20 MW) began 

operating in early 2013 to supply the domestic market. 87 

Innovation and product differentiation have become increasingly 

important, and successful manufacturers have diversified 

both up- and downstream, with many expanding into project 

development or building strategic partnerships. 88 First Solar 

moved away from the residential market to focus on development 

of utility-scale PV plants; First Solar and SunPower (USA) 

both announced deals that will provide entry into the Chinese 

market; Trina Solar is becoming a provider of total solar solutions; 

and Canadian Solar is shifting into project development 

and ownership. 89 

The year 2012 was also mixed for CPV. Several companies, 

including Skyline Solar and GreenVolts (both USA), closed their 

doors, and SolFocus (USA) announced a decision to sell; but 

those companies that were still operating invested increasing 

amounts of time and money in building manufacturing facilities 

in emerging markets. 90 The industry is currently in the commercialisation 

phase, but several challenges remain, including 

obtaining financing required to scale up projects, and demonstrating 

continuous high yield outside the laboratory. 91 

02 


02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – CSP 

Concentrating Solar Thermal 

Power (CSP) 

■■CSP Markets 

The concentrating solar thermal power (CSP) market continued 

to advance in 2012, with total global capacity up more than 

60% to about 2,550 MW. 1 (See Figure 14 and Reference Table 

R6.) The market doubled relative to 2011, with Spain accounting 

for most of the 970 MW brought into operation. 2 From the 

end of 2007 through 2012, total global capacity grew at an 

average annual rate approaching 43%. 3 

Parabolic trough is the most mature technology, and it 

continues to dominate the market, representing about 95% 

of facilities in operation at the end of 2011, and 75% of plants 

under construction by mid-2012. 4 Towers/central receivers 

are becoming more common and accounted for 18% of plants 

under construction by mid-year, followed by Fresnel (6%) and 

parabolic dish technologies, which are still under development. 5 

Spain continued to lead the world for both deployment and total 

capacity of CSP, adding 950 MW to increase operating capacity 

by 95% to a total of 1,950 MW. 6 As in the global market, 

parabolic trough technology dominates in Spain, but 2012 

saw completion of the world’s first commercial Fresnel plant. 7 

The world’s first hybrid CSP-biomass plant also came on line. 8 

However, policy changes in 2012 and early 2013—including 

a moratorium on new construction, retroactive feed-in tariff 

(FIT) changes, and a tax on all electricity producers—pose new 

challenges to Spain’s industry. 9 

The United States remained the second largest market in terms 

of total capacity, ending the year with 507 MW in operation. 10 As 

in 2011, no new capacity came on line, but just over 1,300 MW 

was under construction at the close of 2012, all due to begin 

operation in the next two years. 11 By year’s end, the Ivanpah 

facility under construction in California’s Mojave Desert was 

75% complete; once on line, this 392 MW power tower plant will 

be the world’s largest CSP facility and is expected to provide 

enough electricity for 140,000 U.S. homes. 12 The Solana plant 

(280 MW), which was 80% constructed by year’s end, will be 

the world’s biggest parabolic trough plant upon completion. 13 

Elsewhere, more than 100 MW of capacity was operating at 

year’s end, with most of this in North Africa. Some relatively 

small projects came on line in 2012: Australia added 9 MW to 

its Liddell Power Station, where solar thermal feeds a coal-fired 

power plant, and Chile became home to the first CSP plant in 

South America, a 10 MW facility to provide process heat for a 

mining company. 14 Other countries with existing CSP that did not 

add capacity in 2012 include Algeria (25 MW), Egypt (20 MW), 

and Morocco (20 MW)—all with solar fields included in hybrid 

solar-gas plants—and Thailand (5 MW). 15 Several additional 

countries had small pilot plants in operation, including China, 

France, Germany, India, Israel, Italy, and South Korea. 16 The 

United Arab Emirates (UAE) joined the list of countries with CSP 

in March 2013, when Shams 1 (100 MW)—the first full-size pure 

CSP plant in the Middle East and North Africa (MENA) region— 

began operation. 17 

Interest in CSP is on the rise, particularly in developing countries, 

with investment spreading across Africa, the Middle East, 

Asia, and Latin America. One of the most active markets in 2012 

was South Africa, where construction began on a 50 MW solar 

power tower and a 100 MW trough plant. 18 Namibia announced 

plans for a CSP plant by 2015. 19 Several development banks 

committed funds for projects planned in the MENA region, 

where ambitious targets could result in more than 1 GW of new 

capacity in North Africa in the next few years for domestic use 

and export. 20 Saudi Arabia and the UAE plan to install CSP to 

meet rapidly growing energy demand and reserve more oil 

for export, and Jordan is evaluating possible projects; in early 

2013, Saudi Arabia launched a competitive bidding process 

that includes significant CSP capacity. 21 

India planned to complete 500 MW by the end of 2013, but only 

one-third might be ready on time and some projects have been 

cancelled; phase two of the National Solar Mission has been 

delayed. 22 In Australia, a 44 MW plant is under construction to 

feed steam to an existing coal facility. 23 Many other countries, 

including Argentina, Chile, and Mexico in Latin America; several 

countries in Europe; Israel; and China have projects under 

construction or have indicated intentions to install CSP plants. 24 

Some experts have expressed concern that the window of 

opportunity for CSP is closing as solar PV prices continue to fall 

and utilities become more familiar with PV. 25 However, CSP has 

a number of attributes that are expected to remain attractive to 

utilities. These include CSP’s ability to provide thermal storage 

and thus to be dispatchable and to enable an increased share 

of variable renewables, and its ability to provide low-cost steam 

for existing power plants (hybridisation). 26 In addition, CSP 

has the potential to provide heating and cooling for industrial 

processes and desalination. 27 

■■CSP Industry 

Although activity continued to focus on Spain and the United 

States, the industry further expanded its focus in Australia, 

Chile, China, India, the MENA region, and South Africa. 28 There 

was a general trend of diversification of employment in Spain, 

the United States, and beyond, and global manufacturing 

capacity increased slightly during 2012. 29 Falling PV and 

natural gas prices, the global economic downturn, and policy 

changes in Spain all created uncertainty for CSP manufacturers 

and developers. 30 

The top companies in 2012 included Abengoa (Spain), a manufacturer 

and developer; manufacturer Schott Solar (Germany); 

and developers Acconia, ACS Cobra, and Torresol (all Spain), 

44

Figure 14. Concentrating Solar Thermal Power Global Capacity, 1984–2012 

Megawatts 

2,600 

2,400 

2,550 

2,200 

2,000 

1,800 

1,600 

1,400 

1,200 

1,000 

800 

600 

400 

200 

0 

14 

74 

1,080 

354 354 354 354 354 354 354 354 354 366 485 

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2011 2012 

1,580 

Source: 

See Endnote 1 


as well as ABB (Switzerland), BrightSource (USA), and ACWA. 31 

Saudi-based ACWA emerged as a key player in 2012, with the 

award of two major projects in alliance with Acciona and TSK 

(Pakistan), in South Africa and Morocco. 32 Chinese firms have 

begun to enter the CSP-related component business and are 

expected to be major suppliers for the foreseeable future. 33 

Spanish companies continued to lead the industry with ownership 

interest in almost three-fourths of CSP capacity deployed 

around the world, and more than 60% of capacity under development 

or construction by early 2013. 34 But Spanish firms were 

challenged by policy changes at home, and companies based 

elsewhere were not immune from difficulties. The U.S. subsidiary 

of Germany’s bankrupt Solar Millennium filed for insolvency 

proceedings, as did SolarHybrid (Germany); BrightSource 

continued to develop several projects including Ivanpah, but 

did not go public as planned; and Siemens (Germany) decided 

to exit the solar business in late 2012, citing intense price pressure 

in solar markets. 35 Schott Solar produced its one-millionth 

solar receiver in November, but as of early 2013 the company 

was seeking bids for the majority stake in its CSP unit. 36 

Because CSP requires large capital investments, individual 

companies are involved in many parts of the value chain, from 

technology R&D to project operation and ownership. Extensive 

supply chains are emerging in Spain and the United States, 

with an increasing number of companies involved in the CSP 

business. 37 

To increase product value or reduce costs, firms also have 

begun to expand development efforts to include a variety of CSP 

technologies. German Protarget released a new design for applications 

in the 1–20 MW range to demonstrate that standardised 

manufacturing processes and modular construction could 

result in faster and more cost-effective installations. 38 3M and 

Gossamer inaugurated a U.S. demonstration facility with the 

world’s largest aperture parabolic trough; it uses lightweight, 

highly reflective film rather than glass, with the purpose of significantly 

reducing installed costs. 39 A few manufacturers have 

begun to market solar concentrator technologies for industrial 

heating and cooling, and desalination, including Solar Power 

Group (Germany), Sopogy (USA), and Abengoa. 40 

Thermal energy storage is becoming an increasingly important 

feature for new plants as it allows CSP to dispatch electricity to 

the grid during cloudy periods or at night, provides firm capacity 

and ancillary services, and reduces integration challenges. 41 

Molten salt is the most widely used system for storing thermal 

energy, but other types—including steam, chemical, thermocline 

(use of temperature differentials), and concrete—are also 

in use or being tested and developed. 42 

To reduce costs through economies of scale, the size of CSP 

projects is increasing. While plants in Spain have been limited 

to 50 MW because of regulatory restrictions, new projects in 

the United States and elsewhere are in the 150–500 MW range 

and even larger. Increasing size helps to reduce costs through 

economies of scale, but appropriate plant size also depends 

on technology. 43 Some projects are also integrating dry cooling 

solutions that significantly reduce water demand, an advancement 

that is important in the arid, sunny regions where CSP 

offers the greatest potential. 44 

CSP prices have declined significantly in recent years, for systems 

with and without thermal storage. 45 (See Table 2, p. 54.) 

Although subject to changes in commodity prices, the major 

components of CSP facilities (including aluminum, concrete, 

glass, and steel) are generally not in tight supply. 46 

02 


02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – CSP 

Solar Thermal Heating and 

Cooling 

■■Solar Thermal Heating and Cooling 

Markets 

Solar thermal technologies contribute significantly to hot water 

production in many countries and increasingly to space heating 

and cooling as well as industrial processes. In 2011 i , the world 

added nearly 51 GW th 

(more than 72 million m 2 ) of solar heat 

capacity, for a year-end total of 247 GW th 

. 1 An estimated 49 GW th 

(>96%) of the market was glazed water systems and the rest was 

unglazed water systems for swimming pool heating, as well as 

unglazed and glazed air collector systems. 2 

The vast majority of solar heat capacity (all types) is in China and 

Europe, together accounting for more than 90% of the world 

market and 81% of total capacity in 2011. 3 The top countries 

for total capacity in operation were China, the United States, 

Germany, Turkey, and Brazil. 4 China focuses on evacuated tube 

(glazed) water collectors, whereas most systems in the United 

States use unglazed water collectors for pool heating. The only 

other markets of note for unglazed water collectors are Australia 

and, to a lesser extent, Brazil; other key markets rely primarily 

on flat plate (glazed) water collector technology. 5 

Counting glazed water systems only ii , the market grew 15%, and 

total global capacity in operation by the end of 2011 (223 GW th 

) 

provided an estimated 193 TWh (696 PJ) of heat annually. 6 The 

2011 market leaders for newly installed glazed water collector 

capacity were China, Turkey, Germany, India, and Brazil; the 

same countries led for total capacity, with Brazil ahead of 

India. 7 (See Figures 15 and 16 and Reference Table R7.) 

By the end of 2012, global solar thermal capacity in operation 

reached an estimated 282 GW th 

. 8 Global capacity of glazed 

water collectors reached 255 GW th 

. 9 (See Figure 17.) China was 

again the main driver of solar thermal demand, adding 44.7 

GW th 

, a market increase of 11% over 2011. Total capacity rose 

18.6% (net 28.3 GW th 

), to 180.4 GW th 

—amounting to about 

two-thirds of global capacity. 10 In China, solar heaters cost far 

less over their lifetimes than do electric or gas heaters, a major 

factor driving the market. 11 Even so, deceleration in the building 

sector and some saturation of rural areas has slowed growth 

since 2009. 12 

Most demand in China is for residential purposes. A growing 

share of systems is being installed on large apartment buildings 

in response to local government mandates. 13 Solar thermal 

systems incorporated into building walls and balconies also 

make up a growing portion of China’s market; simple rooftop 

installations account for about 60% of the market, and falling. 14 

The European Union accounted for most of the remaining 

added capacity, although growth continued to be constrained 

by lower rates of building renovation, due in large part to the 

economic crisis, and to the reduction of support policies for 

solar heating. 15 Germany and Austria, the long-term EU leaders 

for total installations, have both experienced marked declines. 16 

Germany remained Europe’s largest installer in 2012, adding 

805 MW th 

for a total of 11.4 GW th 

; but this was down from 889 

MW th 

in 2011, explained partially by a reduction in incentives as 

of January 2012. 17 The Austrian market shrank 10.3% in 2012, 

following a 17.8% decline in 2011, due largely to the greater 

appeal of solar PV for investors. 18 The Greek market has been 

trending upwards despite economic turmoil, increasing 7.5% in 

2011 and 5.7% in 2012, due to rising electricity and heating oil 

prices. 19 While the European market is becoming more diversified, 

growth in developing markets, such as Denmark and 

Poland, did not make up for the decrease in the region’s larger 

markets in 2012. 20 

Turkey had almost 10.2 GW th 

of glazed water collectors in 

operation at the end of 2011. 21 Markets remained strong without 

government incentives and despite an expanding natural gas 

network due largely to a high level of public awareness about 

the technology. 22 In addition to hotels and hospitals, the lowincome 

housing sector is an important market in Turkey, and 

multi-family structures are considered to be the fastest growing 

market segment. 23 

Japan and India are the largest Asian markets outside of China. 

India added more than 0.6 GW th 

during the fiscal year 2011–12 

for a total of 4.8 GW th 

in early 2013. 24 Japan’s market experienced 

limited growth during 2011 and 2012, but is still below 

2008 levels, and South Korea has seen installations slow in 

recent years. 25 But Thailand’s market is growing in response to 

an incentive for new hybrid (solar-waste heat) systems, with the 

capacity of subsidised systems increasing 13% in 2012. 26 

Brazil added almost 0.6 GW th 

to end 2012 with about 5.7 GW th 

(including unglazed water collectors). 27 The Brazilian market 

has expanded rapidly due in part to programmes such as Minha 

Casa Minha Vida (“My House, My Life”), which mandates solar 

thermal on low-income housing. 28 Mexico is also starting to 

play a role, and there are very small but growing markets in 

Argentina, Chile, and Uruguay. 29 

To the north, the United States accounted for almost two-thirds 

of all unglazed water collectors in operation. 30 The U.S. market 

for glazed water collectors is relatively small, however, and new 

installations declined in 2011 relative to 2010. 31 At least in 

California, low natural gas prices and lack of awareness have 

made it difficult to sell systems in the residential market. 32 As 

with solar PV, however, third-party ownership represents a 

growing trend, and some states have set solar thermal carveouts 

in their renewable portfolio standards. 33 

Several countries in Africa use solar thermal, including Egypt, 

Mozambique, Tunisia, Zimbabwe, and South Africa, the most 

mature market in sub-Saharan Africa. 34 Tunisia’s PROSOL 

programme increased annual installations more than 13-fold 

over five years, to more than 64 MW th 

. 35 In the Middle East, 

Israel leads for capacity installed, followed by Jordan and 

Lebanon, where penetration is 13% in the residential sector and 

the market is driven by national subsidies, zero-interest loans, 

and municipal mandates. 36 

Although it ranked 22nd overall for capacity of glazed water 

systems at the end of 2011, Cyprus remained the world leader 

i The year 2011 is the most recent one for which firm global data and most country statistics are available. 

ii Most countries collect data for glazed water collectors only, although the most important markets for unglazed water collectors also track this collector type; 

air collector capacities are more uncertain, but play a minor role in the market overall. To avoid mixing countries that have detailed data across all collectors 

with those that do not, the GSR focuses primarily on glazed water collectors. 

46

SOLAR THERMAL HEATING 

Figure 15. Solar Water Heating Global Capacity Additions, Shares of Top 12 Countries, 2011 

Turkey 2.6% 

Germany 1.8% 

India 1.5% 

Brazil 0.7% 

Italy 0.6% 

Israel 0.5% 


Spain 0.4% 

Poland 0.4% 

France (mainland) 0.3% 

Austria 0.3% 


China 83% 

Total Added 

~49 GW th 

Source: 

See Endnote 7 


Figure 16. Solar Water Heating Global Capacity, 

Shares of Top 12 Countries, 2011 

Total CAPACITY 

~223 GW th 

China 68% 

Germany 4.6% 

Turkey 4.6% 

Brazil 1.7% 

India 1.5% 

Japan 1.5% 

Israel 1.3% 

Austria 1.3% 

Greece 1.3% 

Italy 0.9% 


Spain 0.8% 


Source: 

See Endnote 7 


Figure 17. Solar Water Heating Global Capacity, 2000–2012 

Gigawatts-thermal 

250 

200 

150 

100 

44 

223 

195 

171 

148 

124 

105 

79 

91 

59 

68 

51 

255 

50 

0 

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

Note: Data are for glazed water collectors only. 

preliminary 

Source: 

See Endnote 

9 for this 

section. 

02 


02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Solar Thermal Heating and Cooling 

on a per capita basis, with 541.2 kilowatts-thermal (kW th 

) per 

1,000 inhabitants, followed by Israel (396.6 kW th 

), Austria 

(355.7 kW th 

), Barbados (321.5 kW th 

), and Greece (268.2 

kW th 

). 37 Remarkably, considering newly installed capacity in 

2011, China ranked second behind Israel on a per capita basis, 

followed by Austria, Cyprus, and Turkey. 38 

Solar space heating and cooling are also gaining ground. The 

most sophisticated markets are in Germany and Austria, where 

advanced applications—such as water and space heating for 

buildings of all sizes; large-scale plants for district heating; and 

air conditioning and cooling—account for a substantial share of 

each market. 39 Hybrid systems that use solar thermal technology 

and heat pumps are also gaining popularity in Europe. 40 

Globally, the market share of systems that provide both water 

and space heating is about 4% and rising, with installations in 

established markets in South America (Brazil, Mexico) and Asia 

(China, India, Japan). 41 

District heating systems that use solar thermal technology 

(often linked to other heat sources like biomass) are cost competitive 

in Austria, Denmark, Germany, and Sweden. 42 During 

2012, systems were added, expanded, or planned across 

Europe; by year’s end, the region had 175 large-scale solar 

thermal systems connected to heating networks, amounting to 

319 MW th 

. 43 Another 200 MW th 

are planned, with 75% of them in 

Denmark, home to Europe’s 10 largest solar thermal systems. 44 

Large heat systems were also installed in South Africa, China, 

and Canada, where North America’s first seasonal storagesolar 

heating system set a world record for meeting 97% of a 

community’s space heating needs. 45 

The global solar cooling market grew at an average annual rate 

exceeding 40% between 2004 and 2012, ending the period 

with about 1,000 solar cooling systems installed, mostly in 

Europe. 46 Large-scale systems are creating interest due to their 

more favourable economics, while the availability of small (

Wind Power 

■■Wind Power Markets 

During 2012, almost 45 GW of wind power capacity began operation, 

increasing global wind capacity 19% to almost 283 GW. 1 

(See Figure 18 and Reference Table R8.) It was another record 

year for wind power, which again added more capacity than 

any other renewable technology despite policy uncertainty in 

key markets. 2 The top 10 countries accounted for more than 

85% of year-end global capacity, but the market continued to 

broaden. 3 Around 44 countries added capacity during 2012, at 

least 64 had more than 10 MW of reported capacity by year’s 

end, and 24 had more than 1 GW in operation. 4 From the end 

of 2007 through 2012, annual growth rates of cumulative wind 

power capacity averaged 25%. 5 

For the first time since 2009, the majority of new capacity 

was installed in the OECD, due largely to the United States. 6 

Developing and emerging economies are moving firmly into the 

mainstream, however. The United States and China together 

accounted for nearly 60% of the global market in 2012, followed 

distantly by Germany, India, and the United Kingdom. 7 Others in 

the top 10 for capacity added were Italy, Spain, Brazil, Canada 

and Romania. 8 The EU represented about 27% of the world 

market and accounted for just over 37% of total global capacity 

(down from 40% in 2011). 9 

The United States had its strongest year yet and was the world’s 

top market in 2012. 10 (See Figure 19.) U.S. installations nearly 

doubled relative to 2011, with almost 64% of the 13.1 GW 

added coming on line in the year’s final quarter. 11 The strong 

market was driven by several factors including increased 

domestic manufacturing of turbine parts and technology 

improvements that are increasing efficiency and driving down 

costs; most important, however, was the expected expiration of 

the federal Production Tax Credit. 12 

Wind power represented as much as 45% of all new electric 

generating capacity in the United States, outdoing natural gas 

for the first time, and the 60 GW operating at year’s end was 

enough to power the equivalent of 15.2 million U.S. homes. 13 

The leading states for capacity added were Texas (1.8 GW), with 

more than 12 GW in operation, California (1.7 GW), and Kansas 

(1.4 GW), and 15 states had more than 1 GW in operation by 

year’s end. 14 

China installed almost 13 GW, accounting for 27% of the world 

market, but showed a significant decline in installations and 

market share relative to 2009–2011. 15 The market slowed 

largely in response to stricter approval procedures for new 

projects to address quality, safety, and grid access concerns. 16 

Another major constraint has been the high rate of curtailment—averaging 

16% in 2011—which results when output 

temporarily exceeds the capacity of the transmission grid to 

transfer wind power to demand centres. 17 

Even so, at year’s end China had nearly 75.3 GW of wind capacity; 

as in 2010 and 2011, about 15 GW of this total had not been 

commercially certified by year-end, although most was feeding 

electricity into the grid. 18 Wind generated 100.4 billion kWh in 

2012, up 37% over 2011 and exceeding nuclear generation for 

the first time. 19 By year’s end, almost 25% of total capacity was 

in the Inner Mongolia Autonomous Region, followed by Hebei 

(10.6%), Gansu (8.6%), and Liaoning (8.1%) provinces, but wind 

is spreading across China—nine provinces had more than 3 GW 

of capacity each, and 14 had more than 1 GW each. 20 

The European Union passed the 100 GW milestone in 2012, 

adding a record 11.9 GW of wind capacity for a total exceeding 

106 GW. 21 Wind power came in second for electric capacity 

added (26.5%), behind solar PV (37%) and ahead of natural 

gas (23%); by year’s end, wind accounted for 11.4% of total EU 

electric capacity. 22 Despite record growth, there is concern 

that the EU lags on its National Renewable Energy Action Plan 

(NREAP) targets, and that 2012 additions do not reflect growing 

economic and policy uncertainty (most capacity was previously 

permitted and financed). 23 Some emerging markets are poised 

for significant growth, but grid connectivity and economic 

issues pose challenges to future development in much of 

Europe, as do land issues arising from having so much capacity 

on shore. 24 

Germany remained Europe’s largest market, rebounding 

strongly with its highest installations in a decade (2.4 GW), for 

a total of 31.3 GW. 25 The United Kingdom ranked second for 

new installations in Europe for the second year running, adding 

1.9 GW (45% offshore) for more than 8.4 GW by year’s end; it 

now ranks third regionally for total capacity, behind Germany 

and Spain, and sixth globally. 26 Italy (1.3 GW), Spain (1.1 GW), 

Romania (0.9 GW), and Poland (almost 0.9 GW) were the other 

leading markets in Europe. 27 Romania and Poland both had 

record years, with Poland’s total capacity up nearly 55% and 

Romania’s almost doubling. 28 

India added about 2.3 GW to maintain its fifth-place ranking 

with a total of 18.4 GW at year’s end. 29 India’s most important 

federal wind power incentives were suspended or reduced in 

early 2012; despite strong policies in many states, uncertainty 

at the national level affected investment decisions and slowed 

markets. 30 Although there was a slowdown in both China and 

India, Asia remained the largest market for the fourth year in a 

row, adding a total of 15.5 GW in 2012, compared with North 

America’s 14.1 GW and all of Europe’s 12.2 GW. 31 

Elsewhere, the most significant growth was seen in Latin 

America. Brazil added 1.1 GW to rank eighth globally for 

newly installed capacity, and it ended 2012 with enough 

capacity (2.5 GW) to meet the electricity needs of 4 million 

households. 32 Brazil’s electric grid is not expanding as rapidly 

as its wind capacity, however, slowing the ability to get new 

wind power online. 33 Mexico also had a strong year, adding 0.8 

GW to approach 1.4 GW total, and brought the region’s largest 

project (306 MW) on line. 34 Others in the region to add capacity 

included Argentina, Costa Rica, Nicaragua, Uruguay, and 

Venezuela, which commissioned its first commercial wind farm 

(30 MW). 35 

To the north, Canada had its second best year, adding more 

than 0.9 GW for a total of 6.2 GW. Three provinces reached 

milestones, with Ontario passing 2 GW total and Alberta and 

Quebec achieving 1 GW each. 36 

Africa and the Middle East saw little development, but Tunisia 

almost doubled its capacity, adding 50 MW; Ethiopia joined the 

list of countries with commercial-scale wind farms, installing 52 

MW; and construction began on several South African projects 

totaling more than 0.5 GW. 37 Elsewhere, Turkey added 0.5 GW 

for a total of 2.3 GW, and Australia was the only country in the 

02 


02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – wINd POwER 

WIND POWER 

Figure 18. Wind Power Global Capacity, 1996–2012 

Source: 

See Endnote 1 


Gigawatts 

300 

250 

200 

150 

100 

50 

6.1 

238 

198 

159 

121 

94 

24 31 39 

48 59 

74 

7.6 10 14 17 

0 

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 

283 

Figure 19. Wind Power Capacity and Additions, Top 10 Countries, 2012 

Gigawatts 

80 

+13 

70 

60 

50 

+13.1 

Added in 2012 

2011 total 

40 

30 

20 

+2.4 

+1.1 

+2.3 

10 

+1.9 +1.3 +0.8 +0.9 +0.1 

Source: 



0 

China 

United 

States 

Germany Spain India United 

Kingdom 

Italy France Canada Portugal 

Figure 20. Market Shares of Top 10 Wind Turbine Manufacturers, 2012 

Others 22.6% 

GE Wind (USA) 15.5% 

Mingyang (China) 2.7% 

Source: 



Sinovel (China) 3.2% 

United Power (China) 4.7% 

Goldwind (China) 6.0% 

Gamesa (Spain) 6.1% 

Suzlon Group (India) 7.4% 

Vestas (Denmark) 14.0% 

Siemens Wind Power 

(Germany) 9.5% 

Enercon (Germany) 8.2% 

50

Pacific to add capacity (0.4 GW), bringing its total to nearly 

2.6 GW. 38 

Worldwide, 13 countries had turbines operating offshore by the 

end of 2012, with 1.3 GW added for a total of 5.4 GW. 39 More 

than 90% of this capacity was located off northern Europe, 

which continued to lead in offshore developments, adding a 

record 1.2 GW (up 35% over 2011) for almost 5 GW total in 

10 countries. 40 The United Kingdom accounted for 73% of 

Europe’s additions, due largely to completion of the first phase 

of the London Array (630 MW), the world’s largest offshore wind 

farm; the U.K. ended 2012 with more than 2.9 GW offshore, 

followed in Europe by Denmark (0.9 GW), Belgium (0.4 GW), 

and Germany (0.3 GW). 41 The remaining offshore capacity was 

in China (0.4 GW), Japan (25.3 MW), and South Korea (5 MW), 

which added 127 MW, 0.1 MW, and 3 MW, respectively. 42 

The trend towards increasing size of individual projects 

continued, driven mainly by cost considerations. 43 Europe’s 

largest onshore wind farm (600 MW) was connected to the grid 

in Romania, and the largest U.S. wind farm (845 MW), which 

began operating in Oregon, is expected to power 235,000 U.S. 

homes. 44 

Independent power producers and energy utilities are currently 

the most important clients in the market in terms of capacity 

installed, but interest in community-owned wind power projects 

is rising in Australia, Canada, Japan, the United States, parts 

of Europe, and elsewhere. 45 In the U.S. state of Iowa alone, at 

least six community projects came on line in 2012, and several 

projects were under way in Australia by year’s end. 46 In Japan, 

interest has increased considerably since the Fukushima 

disaster in March 2011. 47 Community power represents the 

mainstream ownership model in Denmark and Germany. 48 

The use of small-scale turbines i is also increasing to meet 

energy needs both on- and off-grid and is driven by the 

development of lower-cost grid-connected inverters; volatile or 

rising fossil fuel prices; and government incentives. 49 Off-grid 

and mini-grid uses prevail, particularly in China and other developing 

countries. 50 Applications are expanding and include rural 

electrification, water pumping, telecommunications, defence, 

and other remote uses. 51 There are two distinct markets: models 

with rated capacity below 10 kW, and those in the 10–500 

kW range. 52 In general, the market is evolving towards 50 kW 

and larger turbines because they are easier to finance. 53 

Worldwide, at least 730,000 small-scale turbines were 

operating at the end of 2011, totaling 576 MW (up 27% over 

2010). 54 China accounts for 40% of global capacity and the 

United States for 35%, followed by the United Kingdom (11%), 

Germany (2.6%), Ukraine, Canada, Italy, Poland, and Spain. 55 

In 2012, the total capacity of U.S. sales of small-scale turbines 

was 18.4 MW. 56 With the exception of China, most interest is 

in North America and Europe, with slow progress in emerging 

wind markets. 57 

Total wind power capacity by the end of 2012 was enough to 

meet at least 2.6–3% of global electricity consumption. 58 In the 

EU, wind capacity operating at year’s end was enough to cover 

7% of the region’s electricity consumption in a normal wind year 

(up from 6.3% in 2011). 59 Several countries met higher shares 

of their electricity demand with wind, including Denmark (30% 

in 2012; up from nearly 26% in 2011), Portugal (20%; up from 

18%), Spain (16.3%; up from 15.9%), Ireland (12.7%, up from 

12%), and Germany (7.7%; down from 8.1%). 60 

Four German states had enough capacity at year’s end to meet 

over 49% of their electricity needs with wind, and through the 

month of July the state of South Australia generated 26% of its 

electricity with wind power. 61 In the United States, wind power 

represented 3.5% of total electricity generation (up from 2.9% 

in 2011) and met more than 10% of demand in nine states 

(five in 2011), with Iowa nearing 25% (up from 19%) and South 

Dakota at 24% (up from 22%). 62 

■■Wind Power Industry 

During 2005–2009, turbine prices increased in response to 

growing global demand, rising material costs, and other factors; 

since then, however, growing scale and greater efficiency have 

combined to improve capacity factors and reduce costs of 

turbines as well as operations and maintenance. 63 Oversupply 

in global turbine markets has further reduced prices, benefitting 

developers by improving the cost-competitiveness of wind 

power relative to fossil fuels. However, the industry has been 

challenged by downward pressure on prices, combined with 

increased competition among turbine manufacturers, competition 

with low-cost gas in some markets, and reductions in policy 

support driven by economic austerity. 64 

Relative to their 2008 peak, turbine prices fell by as much 

as 20–25% in western markets and more than 35% in China 

before stabilising in 2012. 65 The costs of operating and maintaining 

wind farms also dropped significantly due to increased 

competition among contractors and improved turbine performance. 

66 As a result, onshore wind-generated power is now 

cost-competitive with or cheaper than conventional power in 

some markets on a per kilowatt-hour basis (including some 

locations in Australia, India, and the United States), although 

new shale gas in some countries is making it more difficult for 

wind (and other renewables) to compete with natural gas. 67 

Offshore wind remains at least twice as expensive as onshore. 68 

The world’s top 10 turbine manufacturers captured 77% of 

the global market and, as in 2011, they hailed from China 

(4), Europe (4), India (1), and the United States (1). Vestas 

(Denmark), the top manufacturer since 2000, surrendered its 

lead to GE Wind (third in 2011), which blew ahead due mainly 

to the strong U.S. market. 69 Siemens moved from ninth to third, 

followed by Enercon (Germany) and Suzlon Group (India), 

both of which moved up one spot relative to 2011. 70 Other top 

companies were Gamesa (Spain) and Goldwind, United Power, 

Sinovel, and Mingyang (all China); both Goldwind and Gamesa 

dropped out of the top five. 71 (See Figure 20.) 

In 2012, more than 550 manufacturing facilities were making 

wind turbine components in every region of the United States; 

despite ongoing policy uncertainty, the share of equipment 

produced domestically increased considerably over the past 

02 

i Small-scale wind systems are generally considered to include turbines that produce enough power for a single home, farm, or small business, and are used 

for battery charging, irrigation, small commercial, or industrial applications. The International Electrotechnical Commission sets a limit at 50 kW, and the World 

Wind Energy Association and the American Wind Energy Association currently define “small-scale” as less than 100 kW, which is the range also used in the 

GSR; however, size can vary according to needs and/or laws of a country or state/province, and there is no globally recognised definition or size limit. 


02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – wINd POwER 

decade, reducing transport-related costs and creating jobs. 72 

(See Sidebar 4.) In Europe, industry activity focused increasingly 

on offshore technologies and project development in 

Eastern Europe and other emerging markets. 73 By late 2012, 

Brazil was home to 11 manufacturing plants and GE had a facility 

under construction, and India had 19 manufacturers with a 

consolidated annual production capacity exceeding 9.5 GW. 74 

In general, however, the turbine manufacturing industry was 

hit hard by rising costs, reductions in government support, 

and overcapacity, with several manufacturers delaying or 

cancelling expansion plans, scaling back operations, reducing 

their workforce, or filing for bankruptcy 75 In the United States, 

companies throughout the wind energy supply chain reduced 

workforces and closed facilities due to policy uncertainty. 76 

Vestas (Denmark) chose to restructure, let go of thousands 

of employees, and end production of its kW size machines. 77 

Sinovel (China) put workers on leave, and many suppliers in 

China in particular have been pushed to the edge of collapse, 

with overcapacity pushing smaller manufacturers out of the 

market. 78 Suzlon (India) has lost money for three years running 

and has struggled with massive debt. 79 

At the same time, expansion and innovation continued in 2012. 

Local-content requirements (see Policy Landscape section) 

have not only spawned trade disputes but also led turbine 

manufacturers to build factories close to growing markets for 

competitive advantage. 80 Chinese companies are taking package 

deals (including government-backed loans) to emerging 

markets and are establishing subsidiaries and partnerships 

with local companies to deploy their excess capacity. 81 

Manufacturers are also assuming more risk to increase their 

share of the growing market for turbine maintenance, which is 

expected to provide relatively stable margins. 82 

Turbine designs continue to evolve in order to reduce costs and/ 

or improve performance, with trends towards longer blades, 

lower wind speeds, and new materials such as concrete for 

towers and carbon fibre for blades. 83 At least two companies 

launched turbines for low-wind sites in 2012, and GE started 

developing blades made of tough, flexible fabric that could 

reduce blade costs by 25–40%. 84 There is also a shift forwards 

towards automated manufacturing of blades and a shift back to 

traditional doubly-fed induction generators and medium-speed 

hybrid drives. 85 

The trend towards ever-larger turbines continued in 2012, with 

the average size delivered to market rising to 1.8 MW (from 1.7 

GW in 2011). 86 Average turbine sizes were 3.1 MW in Denmark, 

2.4 MW in Germany, 1.9 MW in the United States, 1.6 MW in 

China, and 1.2 MW in India. 87 During 2012, the average size 

installed offshore in Europe was up 14% over 2011 to 4 MW, and 

31 companies announced plans for 38 new offshore turbine 

models, with three-quarters of these being 5 MW and up. 88 

Most manufacturers are developing turbines in the 4.5–7.5 MW 

range, with 7.5 MW being the largest size that is commercially 

available, but several companies announced plans in 2012 to 

develop even larger machines. 89 Turbines are also rising higher 

and being outfitted with longer blades to capture more energy: 

REpower erected its tallest turbine to date, with a 143-metre 

hub height, and Siemens unveiled the “longest blades in the 

world” at 75 metres. 90 

In addition to seeing larger turbines, the offshore wind industry 

is moving into deeper water, farther from shore, and with 

greater total capacities per project, leading to increased 

interest in floating platforms. 91 Several countries have pilot 

programmes for floating turbines, and Japan launched its first 

(100 kW machine) in 2012, with plans to install a full-scale 

machine in 2013. 92 In Europe, the average offshore wind farm 

size increased 36% relative to 2011 (to 271 MW). 93 As offshore 

projects become larger, there is growing competition for 

manufacturing capacity and installation resources, creating 

a trend towards vertical integration and consolidation in the 

supply chain, including installation vessels, with several project 

developers securing vessels and some funding new ones. 94 

The small-scale (

Sidebar 4. Jobs in Renewable Energy 

An estimated 5.7 million people worldwide work directly or indirectly 

i in the renewable energy sector, based on a wide range 

of studies, principally from the period 2009–2012. (See Table 

1.) This global figure should not be understood as a direct, yearon-year 

comparison with the 5 million jobs estimate published 

in GSR 2012, but rather as an ongoing effort to refine the data. 

Global numbers remain incomplete, methodologies are not 

harmonised, and the different studies used are of uneven 

quality. The global renewable energy workforce encompasses 

a broad variety of jobs and occupations, ranging from low- to 

very high-skilled. 

Although a growing number of countries is investing in renewable 

energy, the bulk of employment remains concentrated in 

a relatively small number of countries, including Brazil, China, 

India, the members of the EU, and the United States. These are 

the major manufacturers of equipment, producers of bioenergy 

feedstock, and leading installers of production capacity. 

Employment is growing in other countries as well, and there are 

increasing numbers of jobs (technicians and sales staff) in the 

off-grid sector of the developing world. For example, selling, 

installing, and maintaining small PV panels in rural Bangladesh 

provide livelihoods directly for as many as 70,000 people; some 

150,000 people are employed directly and indirectly. 

By technology, the largest number of jobs, about 1.38 million, 

is currently in the biofuels value chain—mostly in cultivating 

and harvesting feedstock, where jobs fluctuate seasonally. 

Brazil’s sugarcane-based ethanol industry is the largest 

biofuels employer, but increasing mechanisation of feedstock 

harvesting has reduced the number of direct jobs in sugarcane 

and ethanol processing to 579,000 in 2011. 

With the exception of EU data, the estimates for biomass heat 

and power are quite soft and dated. Geothermal and hydropower 

data in Table 1 are based on rough calculations. For solar 

heating/cooling, there are significant discrepancies among 

available sources, and estimates range from 375,000 jobs 

globally to 800,000 for China alone. 

Although the growth of jobs in the wind industry has slowed 

somewhat globally, employment in solar PV has surged in 

recent years. Yet solar PV is experiencing turbulence, as massive 

overcapacities and tumbling prices have caused layoffs 

and bankruptcies on the manufacturing side, while allowing 

sharp increases in the ranks of installers. 

Hit hard by economic crisis and adverse policy changes, 

Spanish renewable energy employment fell from 133,000 jobs 

in 2008 to 120,000 in 2011. The CSP industry at first offset a 

portion of the job loss, but it is in trouble itself now due to policy 

changes, with employment falling below 18,000 in 2012. In 

France, 17% of renewable energy jobs were lost between 2010 

and 2012, principally in solar PV and geothermal heat pumps. 

Germany lost 23,000 solar PV jobs in 2012, but added 17,000 

wind power jobs. 

In the United States, solar employment related to installations is 

soaring, while the number of wind and biofuels jobs fluctuates 

in response to policy changes and other factors. For example, 

U.S. biofuels employment declined from 181,300 to 173,600 

in 2012 due to soaring feedstock prices, a drought-induced 

decline in yield, and lower demand. 

Overall, aggregate worldwide renewable energy employment 

continues to increase in a dynamic—albeit somewhat tumultuous—process 

that entails both gains and losses in different 

parts of the world. 

Table 1. Estimated Direct and Indirect Jobs in Renewable Energy Worldwide, by Industry 

Technologies Global China EU Brazil United India Germany Spain 

States 

Thousand Jobs 

Biomass a 753 266 274 152 f 58 57 39 

Biofuels 1,379 24 109 804 e 217 g 35 23 4 

Biogas 266 90 71 85 50 1 

Geothermal a 180 51 35 14 0.3 

Hydropower (small) b 109 24 8 12 7 2 

Solar PV 1,360 300 d 312 90 112 88 12 

CSP 53 36 17 2 34 j 

Solar heating/ cooling 892 800 32 12 41 11 1 

Wind power 753 267 270 29 81 48 118 28 

02 

Total c 5,745 1,747 1,179 833 611 391 378 h 120 

a Power and heat applications. b Employment information for large-scale hydropower is incomplete, and therefore focuses on small hydro. Although 10 MW 

is often used as a threshold, definitions are inconsistent across countries. c Derived from the totals of each renewable energy technology. d Estimates run 

as high as 500,000. e About 365,000 jobs in sugarcane and 213,400 in ethanol processing in 2011; also includes 200,000 indirect jobs in manufacturing 

the equipment needed to harvest and refine sugar cane into biofuels, and 26,000 jobs in biodiesel. f Bio-power direct jobs run only to 15,500. g Includes 

173,600 jobs for ethanol and 42,930 for biodiesel in 2012. h Includes 9,400 jobs in publicly funded R&D and administration; not broken down by technology. 

j 2011 estimate by the Spanish Renewable Energy Association (APPA); Protermosolar offers a somewhat lower figure for the same year (28,850 jobs) and finds 

that the number fell to 17,816 in 2012. 

i Direct jobs are those related to a sector’s core activities, such as manufacturing, equipment distribution, and site preparation and installation, whereas 

indirect jobs are those that supply the industry. 

Notes: Data are principally for 2009–2012, with dates varying by country and technology. Totals may not add up due to rounding. 

Source: IRENA, Renewable Energy and Jobs (Abu Dhabi: 2013). 

53

02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY 

TABLE 2. Status of Renewable Energy Technologies: Characteristics and Costs 

Technology Typical Characteristics Capital Costs Typical Energy Costs 

(USD/kW) 

(LCOE – U.S. cents/kWh) 

Power Generation 

Bioenergy combustion: 

Boiler/steam turbine 

Co-fire; Organic MSW 

Plant size: 25–200 MW 

Conversion efficiency: 25–35% 

Capacity factor: 50–90% 

800–4,500 

Co-fire: 200–800 

5.5–20 

Co-fire: 4–12 

Bioenergy gasification 

Bioenergy anaerobic 

digestion 

Geothermal power 

Hydropower: Grid-based 

Hydropower: Off-grid/rural 

Ocean power: Tidal range 

Solar PV: Rooftop 

Solar PV: 

Ground-mounted 

utility-scale 


thermal power (CSP) 









Plant size: 1 MW–18,000+ MW 

Plant type: reservoir, run-of-river 


Plant capacity: 0.1–1,000 kW 

Plant type: run-of-river, hydrokinetic, 

diurnal storage 

Plant size: 250 MW 


Peak capacity: 3–5 kW (residential); 

100 kW (commercial); 

500 kW (industrial) 

Capacity factor: 10–25% (fixed tilt) 

Peak capacity: 2.5–250 MW 

Capacity factor: 10–25% (fixed tilt) 


(high end is CPV) 

Types: parabolic trough, Fresnel, 

tower, dish 

Plant size: 50–250 MW (trough); 

20–250 MW (tower); 10–100 MW 

(Fresnel) 

Capacity factor: 20–40% (no 

storage); 35–75% (with storage) 

2,050–5,500 6–24 

Biogas: 500–6,500 

Landfill gas: 1,900–2,200 

Condensing flash: 2,100–4,200 

Binary: 2,470–6,100 

Projects >300 MW:

TABLE 2. Status of Renewable Energy Technologies: Characteristics and Costs (Continued) 

Technology Typical Characteristics Capital Costs Typical Energy Costs 

(USD/kW) 

(LCOE – U.S. cents/kWh) 

Hot Water/Heating/Cooling (continued) 

Solar thermal: 

Domestic hot water 

systems 

Collector type: flat-plate, evacuated 

tube (thermosiphon and pumped 

systems) 

Plant size: 2.1–4.2 kW th (single 

family); 35 kW th (multi-family) 

Efficiency: 100% 

Single-family: 1,100–2,140 (OECD, 

new build); 1,300–2,200 (OECD, 

retrofit) 

150–635 (China) 

Multi-family: 950–1,850 (OECD, new 

build); 1,140–2,050 (OECD, retrofit) 

1.5–28 (China) 


Domestic heat and hot 

water systems (combi) 

Collector type: same as water only 

Plant size: 7–10 kW th (single-family); 

70–130 kW th (multi-family); 

70–3,500 kW th (district heating); 

>3,500 kW th (district heat with 

seasonal storage) 

Efficiency: 100% 

Single-family: same as water only 

Multi-family: same as water only 

District heat (Europe): 460–780; 

with storage: 470–1,060 

5–50 

(domestic hot water) 

District heat: 

4 and up (Denmark) 


Industrial process heat 

Solar thermal: Cooling 

Collector type: flat-plate, evacuated 

tube, parabolic trough, linear Fresnel 

Plant size: 100 kW th –20 MW th 

Temperature range: 50–400° C 

Capacity: 10.5–500 kW th 

(absorption chillers); 

8–370 kW th (adsorption chillers) 

Efficiency: 50–70% 

470–1,000 (without storage) 4–16 

1,600–5,850 n/a 

Transport Fuels Feedstocks Feedstock characteristics Production costs 

(U.S. cents/litre) i 

Biodiesel 

Soy, rapeseed, mustard seed, palm, 

jatropha, waste vegetable oils, and 

animal fats 

Range of feedstocks with different 

crop yields per hectare; hence, 

production costs vary widely among 

countries. Co-products include 

high-protein meal. 

Soybean oil: 45-90 

(Argentina/USA) 

Palm oil: 30–100 

(Indonesia/Malaysia/ 

Thailand/Peru) 

Rapeseed oil: 

120–140 (EU) 

Ethanol 

Sugar cane, sugar beets, corn, 

cassava, sorghum, wheat (and 

cellulose in the future) 

Range of feedstocks with wide yield 

and cost variations. Co-products 

include animal feed, heat and power 

from bagasse residues. Advanced 

biofuels are not yet fully commercial 

and have higher costs. 

Sugar cane: 

45–80 (Brazil) 

Corn (dry mill): 

60–120 (USA) 

Technologies Typical characteristics Installed costs (USD/kW) or LCOE 

for Rural Energy 

(U.S. cents/kWh) 

Biogas digester Digester size: 6–8 m 3 n/a 

Biomass gasifier Size: 20–5,000 kW LCOE: 8–12 

02 

Solar home system System size: 20–100 W LCOE: 40–60 

Household wind turbine 

Turbine size: 0.1–3 kW 

Capital cost: 10,000/kW (1 kW turbine); 5,000/kW (5 kW); 

2,500/kW (250 kW) 

LCOE: 15–35+ 

Village-scale mini-grid System size: 10–1,000 kW LCOE: 25–100 

Notes: Costs are indicative economic costs, levelised, and exclusive of subsidies or policy incentives. Several components determine the levelised costs of energy (LCOE), 

including: resource quality, equipment cost and performance, balance of system/project costs (including labour), operations and maintenance costs, fuel costs (biomass), the 

cost of capital, and productive lifetime of the project. The costs of renewables are site specific, as many of these components can vary according to location. Costs for solar 

electricity vary greatly depending on the level of available solar resources. It is important to note that the rapid growth in installed capacity of some renewable technologies and 

their associated cost reductions mean that data can become outdated quickly; solar PV costs, in particular, are changing rapidly. Costs of off-grid hybrid power systems that 

employ renewables depend largely on system size, location, and associated items such as diesel backup and battery storage. Data for rural energy are unchanged from GSR 

2011, with the exception of wind turbines. 

i Litre of diesel or gasoline equivalent 

Source: See Endnote 99 in Wind Power section for sources and assumptions. 


03 

Wind turbines on the eastern slopes of the 

San Gorgonio Pass in California, United States. 

Global new investment in renewable 

power and fuels reached USD 244 billion 

in 2012, down 12% relative to 2011, due 

to policy uncertainties and falling costs. 

The balance of investments shifted 

dramatically, with developing countries 

accounting for nearly half of the global total. 

Source: NASA

03 INVESTMENT FLOWS 

Global new investment in renewable power and fuels was USD 

244 billion in 2012, down 12% from the previous year’s record 

amount of USD 279 billion. 1 i (See Sidebar 5, p. 60, and Figure 

21.) Despite the setback, the total in 2012 was the second 

highest ever and 8% above the 2010 level. If the unreported 

investments in hydropower projects larger than 50 MW and in 

solar hot water collectors are included, total new investment 

in renewable energy exceeded USD 285 in 2012. ii This is lower 

than the equivalent estimate for 2011, however. 

The decline in investment—after several years of growth— 

resulted from uncertainty over support policies in Europe and 

the United States, as well as from actual retroactive reductions 

in support. On a more positive note, it also resulted from sharp 

reductions in technology costs. 

A major theme of 2012 was a further movement in activity from 

developed to developing economies, although the former group 

still accounted for more than half of global investment. In 2007, 

developed economies invested two-and-a-half times more in 

renewables (excluding large hydro) than developing countries 

did; in 2012, the difference was only 15%. China was once 

again the dominant country for renewable energy investment. 

The other major theme of 2012 was a further, significant reduction 

in the costs of solar PV technology. In fact, the continued 

improvements in cost-competitiveness for solar and wind power 

helped to support demand in many markets. 

■■Investment by Economy 

The year 2012 saw the most dramatic shift yet in the balance of 

renewable energy investment worldwide, with the dominance 

of developed countries waning and the importance of developing 

countries growing. In the developing world, renewable 

energy outlays reached USD 112 billion, up from USD 94 billion 

in 2011, and represented some 46% of the world total (up 

from 34% in 2011 and 37% in 2010). By contrast, outlays by 

developed economies fell sharply (29%), from USD 186 billion 

in 2011 to USD 132 billion in 2012, the lowest level since 2009. 

This shift reflects three important trends: a reduction in 

subsidies for wind and solar project development in Europe 

and the United States; increasing investor interest in emerging 

markets that offer both rising power demand and attractive 

Figure 21. Global New Investment in Renewable Energy, 2004–2012 

Source: 

See Endnote 1 


Billion US Dollars 

300 

250 

227 

279 

244 

200 

150 

100 

65 

100 

146 

172 168 

50 

40 

03 

0 

2004 2005 2006 2007 2008 2009 2010 2011 2012 

i This section is derived from Frankfurt School – UNEP Collaborating Centre for Climate & Sustainable Energy Finance (FS-UNEP) and Bloomberg New Energy 

Finance (BNEF), Global Trends in Renewable Energy Investment 2013 (Frankfurt: 2013), the sister publication to the GSR. Figures are based on the output of 

the Desktop database of BNEF unless otherwise noted. The following renewable energy projects are included: all biomass, geothermal, and wind generation 

projects of more than 1 MW; all hydro projects of between 1 and 50 MW; all solar power projects, with those less than 1 MW estimated separately and referred to 

as small-scale projects or small distributed capacity; all ocean energy projects; and all biofuel projects with an annual production capacity of 1 million litres or 

more. For more detailed information, please refer to the FS-UNEP/BNEF Global Trends report. 

ii Investment in large hydropower (>50 MW) and solar water collectors is not included in the overall total for investment in renewable energy. BNEF tracks only 

hydropower projects of between 1 MW and 50 MW, and solar water collectors are not included with small-scale projects because they do not generate power. 



renewable energy resources; and falling technology costs of 

wind and solar PV. 

Several regions of the world experienced a reduction in 

investment in 2012 relative to 2011; the exceptions were Asia 

and the Middle East, the Americas excluding the United States 

and Brazil, and Africa. 2 (See Figure 22.) Europe and China 

continued to be the most significant investors; together, they 

accounted for 60% of the world total in 2012, even though it 

was Europe’s weakest year since 2009. 

At the national level, the top investors included four developing 

countries (most of the BRICS countries) and six developed 

countries. China was in the lead with USD 64.7 billion invested, 

followed by the United States (USD 34.2 billion), Germany 

(USD 19.8 billion), Japan (USD 16.0 billion), and Italy (USD 

14.1 billion). The next five were the United Kingdom (USD 8.8 

billion), India (USD 6.4 billion), South Africa (USD 5.7 billion), 

Brazil (USD 5.3 billion), and France (USD 4.6 billion). i 

China accounted for USD 66.6 billion (including R&D) of 

renewable energy new investment, up 22% from 2011 levels. It 

was fuelled by strong growth in the solar power sector, including 

both utility-scale ii and small-scale projects (

Germany invested more than any other country in smallscale 

renewables, but there was a fairly narrow gap between 

Germany’s input and investments in Japan and Italy. The United 

States and China took fourth and fifth places for investment in 

small-scale capacity. 

Japan’s utility-scale finance jumped 229% to USD 3 billion, and 

the country saw spectacular investment in small-scale projects, 

which grew 56% to USD 13.1 billion. These significant increases 

in both sectors reflect Japan’s decision after the March 2011 

Fukushima nuclear disaster to encourage renewable energy 

deployment more vigorously. Japan’s feed-in tariff (FIT) for solar 

PV installations has been particularly attractive for investors. 

In Italy, investment in renewable energy fell 53% in 2012, to 

USD 14.1 billion. This was due to lower payments under Italy’s 

feed-in tariff (FIT) and to the strict limits put on the amount of 

new wind and solar power capacity eligible for FIT support. 

Small-scale investment accounted for most of this total, at 

USD 13 billion. 

While investment was down in most leading developed country 

markets, it increased substantially in a number of new markets 

around the world. There is striking momentum in the Middle 

East and Africa, where annual investment in renewable energy 

has risen from less than USD 1 billion in the middle of the last 

decade to USD 11.5 billion in 2012. South Africa experienced 

a stunning leap in 2012, increasing its investment in renewable 

energy from a few hundred million dollars to USD 5.7 billion. 

Elsewhere in Africa, Morocco saw a jump in outlays from USD 

297 million to USD 1.8 billion, while Kenya saw commitments 

rise from almost zero in 2011 to USD 1.1 billion in 2012. 

In Latin America, Brazil continued to be the leading investor 

despite a 38% decline in 2012. But investment in renewable 

energy is growing rapidly elsewhere. Mexico’s investment 

increased more than fivefold, from USD 352 million in 2011 

to USD 2 billion in 2012, and Chile and Peru turned out to be 

attractive new markets. 

Source: 

See Endnote 2 


EUROPE 

CHINA 

MIDDLE EAST 

& AFRICA 

INDIA 

ASIA AND OCEANIA 

ASIA AND OCEANIA 

(excl. China & India) 

6.7 

8.3 

8.9 

11.0 

18.1 

11.5 13.2 

23.8 29.0 

2004 2005 2006 2007 2008 2009 2010 2011 2012 

EUROPE 

112.3 

38.4 

29.4 

19.6 

74.7 72.9 

61.7 

101.3 

79.9 

INDIA 

2.4 

3.2 

5.5 

6.3 

5.2 

4.4 

8.7 

13.0 6.5 

CHINA 

2.6 

5.8 

40.0 37.2 

25.0 

15.8 

10.2 

54.7 66.6 

03 

2004 2005 2006 2007 2008 2009 2010 2011 2012 

2004 2005 2006 2007 2008 2009 2010 2011 2012 

2004 2005 2006 2007 2008 2009 2010 2011 2012 



Sidebar 5. Investment Types and Terminology 

Investments in renewable energy are made by a range of public 

and private entities and throughout the financing continuum, 

from the birth of an idea or technology, to the construction 

of renewable energy plants, to sale of the companies that 

manufacture renewable energy equipment. Types and levels of 

investment differ depending on the stage in the process: 

1. Technology Research: Focused on the development of 

new knowledge and potential products or ideas. Funding 

comes from private and (primarily) public R&D funds looking 

towards a long-term investment horizon with relatively 

uncertain returns. The share of global new investment in 

research in renewables technology in 2012 was about 4%. 

2. Technology Development/Commercialisation: Promising 

ideas or knowledge that emerge from R&D activities are 

developed into commercially viable products, processes, 

or services. Large corporations fund these development 

activities in-house, whereas smaller entities usually must 

raise external financing, typically from high-risk investors 

seeking higher returns such as venture capitalists (VC) 

and, to a limited extent, private equity investors. The share 

of global new investment in technology development and 

commercialisation in 2012 was almost 1%. 

3. Manufacturing: Commercialised technology is produced 

at scale through the mobilisation of assets and the establishment 

of manufacturing facilities. Funding for this stage 

is derived from private equity expansion capital and from 

public equity markets (stock markets). The share of global 

new investment in manufacturing in 2012 was over 2%. 

4. Project (Roll-out): The most capital-intensive phase, during 

which technology is installed and commercially operated 

(requiring expenditure on land, permits, and licences, 

as well as engineering, procurement, and construction). 

Projects are either small-scale distributed capacity (

■■Investment by Technology 

In 2012, solar power was the leading sector by far in terms of 

money committed; at USD 140.4 billion, solar accounted for 

more than 57% of total new investment in renewable energy. 

Wind power was second with USD 80.3 billion, representing 

almost 33%. The remaining 10% of total new investment was 

made up of bio-power and waste-to-energy i (USD 8.6 billion), 

small-scale hydropower (


■■Investment by Type 

Global research and development (R&D) spending on renewable 

energy inched 1% higher to USD 9.6 billion in 2012, marking the 

eighth consecutive year rise. (See Reference Table R9.) Global 

R&D investment has almost doubled since 2004 in absolute 

terms (up 93%); however, R&D spending by OECD governments 

as a proportion of GDP is scarcely a quarter of its level 30 years 

ago. 8 Europe remained the largest centre for R&D in total, but 

China moved ahead on government spending. The United 

States was the only region to show positive, although modest, 

trends in both corporate and government outlays during 2012. 

On the whole, government R&D spending rose 3% to USD 

4.8 billion, while corporate R&D fell 1% to just below USD 4.8 

billion, making public and private spending broadly equal for 

the third year in a row. Solar power continued to dominate at 

USD 4.9 billion, claiming just over half (51%) of all research 

dollars spent, despite a 1% fall relative to 2011. It was followed 

by wind power (up 4% to USD 1.7 billion), and biofuels (up 2% to 

USD 1.7 billion). 

Venture capital and private equity investment (VC/PE) in 

renewable energy fell by 30% to USD 3.6 billion, the lowest level 

since 2005, as VC/PE investors faced a bleak economic outlook 

in Europe, China, and the United States. Other factors driving 

the decline were overcapacity, plunging product prices, subsidy 

reductions, and continuing policy uncertainty. Three-quarters 

of the decline was in private equity expansion capital, and most 

of the remaining decrease was in early-stage venture capital. 

By contrast, seed funding, the earliest stage of VC, rose 146% 

over 2011. While solar remained the largest sector for VC/PE, 

it suffered the steepest decline, down 40% to USD 1.5 billion, 

followed by investment in biomass and waste-to-energy, which 

halved to USD 500 million. 

Amid the economic gloom, new public market investment (in 

stock markets) in renewable energy slumped by more than 

60% to just over USD 4 billion, scarcely a fifth of the peak level 

established in 2007. The main reasons for under-performance 

of renewables shares were distress in the wind and solar 

supply chains due to overcapacity and unease about policy 

developments in Europe and the United States. Wind suffered 

the most, down 72% to USD 1.3 billion. This left solar power as 

the biggest issuer of new stocks, at USD 2.3 billion, despite the 

fact that it was down 50% relative to 2011. Biofuels took third 

place with USD 400 million, but shrank 43%. 

Asset finance of utility-scale projects again made up the lion’s 

share (61%) of total new investment in renewable energy, 

totalling USD 148.5 billion in 2012. This was down 18% from 

the record USD 180.1 billion in 2011, but ahead of the USD 

143.7 billion in 2010. The utility-scale share of all renewable 

energy investment was down four percentage points from 2011, 

reflecting the rising share of total investment going to small (

■■Renewable Energy Investment in 

Perspective 

Gross investment in renewable electric generating capacity 

(not including hydro >50 MW) was USD 227 billion in 2012. This 

compares with gross investment in fossil fuel-based capacity of 

USD 262 billion. By this measure, the gap between renewables 

and fossil fuels narrowed in 2012, with investment in renewable 

power capacity down 10% relative to 2011 and fossil fuel 

investment down about 13%. 

Further, net investment in additional fossil fuels capacity is less 

than gross investment, which includes spending on replacement 

plants. By contrast, almost all investment in renewable 

capacity is net, meaning that it adds to overall generating 

capacity. Considering only net fossil fuel investment in 2012, 

renewable power was in the lead for the third consecutive year, 

with its USD 227 billion taking a wide lead over fossil fuels’ 

estimated USD 147.7. If investment in hydropower projects >50 

MW is included, then global investment in renewable power 

capacity was one-and-a-half to two times the net investment in 

fossil fuels in 2012. 

Bank, which granted Morocco USD 800 million in loans to 

support renewable energy programmes. 

■■Early Investment Trends in 2013 

Global new investment in renewable energy in the first quarter 

(Q1) of 2013 amounted to USD 40 billion, down 36% relative 

to the final quarter of 2012, and the lowest level in any quarter 

since Q1 2009. 

Although the first quarter has often been the weakest of the 

four in recent years, reflecting the fact that subsidies tend to 

expire at the end of December, the weakness in Q1 2013 was 

not just seasonal. Asset finance of utility-scale projects, venture 

capital and private equity investment, and public markets 

investment together totalled USD 21 billion in the first quarter, 

down more than a third from the equivalent in the first three 

months of 2012. 

Small-scale project investment was USD 18.5 billion in the first 

quarter of 2013, down slightly from a USD 20 billion quarterly 

average in 2012. This reflected the further reduction in PV 

module costs between Q1 2012 and Q1 2013. 

■■Development and National Bank Finance 

Development banks provided USD 79.1 billion of finance 

in 2012 to broad clean energy, including hydro and other 

renewable energy projects, manufacturers, research, energy 

efficiency, transmissions, and distribution. This was down just 

over 1% from 2011 levels. Of this amount, USD 50.8 billion of 

finance went to renewable energy projects, manufacturers, and 

research efforts, down slightly from the previous year. 

The largest player was once again Germany’s KfW, which made 

USD 26 billion (EUR 20 billion) of finance available, down 10% 

on 2011 levels, followed by China Development Bank with USD 

15 billion (up 1%), BNDES of Brazil (USD 11.9 billion), European 

Investment Bank (USD 6 billion) and World Bank Group (USD 

5 billion). Looking at core renewable energy lending, the 

European investment Bank made some USD 5.6 billion (EUR 

4.3 billion) available in 2012. 

One key new trend in 2012 was the increasing role of smaller 

and newer development banks in renewable energy financing. 

These included the Development Bank of Southern Africa, 

which approved loan facilities totalling USD 1 billion earmarked 

for renewable energy projects, and the African Development 

03 


04 

Strings of solar PV panels, arranged 

in grids, in the state of Gujarat in 

western India. 

Ambitious new solar power targets 

were set in the Middle East, North 

Africa, and Asia, as global PV capacity 

surpassed the 100 GW milestone. 

As of early 2013, 127 countries had 

renewable energy support policies 

in place, and more than two-thirds of 

these were developing economies. 

© Geoeye / SPL / Cosmos

04 POLICY LANDSCAPE 

The number of policies and targets in place worldwide to 

support the development and deployment of renewable energy 

technologies increased yet again in 2012 and early 2013, and 

the number of countries supporting renewables continued to 

rise. As of early 2013, renewable energy support policies were 

identified in 127 countries, an increase of 18 from the 109 

countries reported in GSR 2012. More than two-thirds of these 

countries were developing or emerging economies. i 1 (See Table 

3, p. 76, Figures 25 and 26, and Figure 23 in GSR 2012.) 

The pace of adoption of new policies has continued to remain 

slow relative to the rate at which policies were added in the 

early-to-mid 2000s. As in recent years, the majority of policy 

developments continued to focus on changes to existing 

policies as, in many cases, policymakers felt forced to adapt 

quickly to rapidly changing market conditions for renewable 

technologies (primarily solar PV), continuingly tight national 

budgets, and the broader impacts of the global economic crisis. 

Policymakers are increasingly aware of the potential national 

development impacts of renewable energy. Beyond reducing 

greenhouse gas emissions from the energy sector, renewables 

can be an important driver of social, political, and economic 

growth—providing co-benefits such as expanding energy 

access; enhancing energy security; promoting improvements 

in health, education, and gender equality; supporting job 

creation; and advancing energy security in countries with little 

or no domestic fossil fuel resources by reducing dependence 

on expensive fuel imports and fossil fuel subsidies. 2 (See 

Sidebar 6, p. 67.) Buoyed by these factors and decreasing costs 

for a number of technologies, renewable energy continued to 

attract the attention of policymakers in 2012. 

This chapter does not aim to assess or analyse the effectiveness 

of specific policies or policy mechanisms, but rather 

attempts to give a picture of new policy developments at the 

national, state/provincial, and local levels around the world. 

■■Policy Targets 

Policy targets for the increased deployment of renewable 

energy technologies have been identified in at least 138 

countries as of early 2013, up from the 118 countries reported 

in GSR 2012, and eight new countries added targets. 

Renewable energy targets take many forms, the most common 

of which is an increase in the renewable share of electricity 

production. Other targets include renewable shares of primary 

and final energy, heat supply, and transport fuels, as well as 

installed and/or operating capacities of specific renewable 

technologies. Targets most often focus on a specific future year, 

but some are set for a range of years or with no year reported. 

(See Reference Tables R10–R12.) 

A number of countries had historic targets aimed at the year 

2012. Of these, India appears to have met its goal of adding 

9 GW of new wind capacity between 2007 and 2012, while 

Tonga delayed its 50% renewable electricity target to 2015. 3 

Morocco fell short of its targets of a 10% renewable energy 

share of final energy consumption (actual share 1.8%), an 

8% renewable energy share in primary energy consumption 

(actual share 4%), a 20% renewable energy share in electricity 

consumption (actual share 9.65%), and 0.28 GW th 

(400,000 m 2 ) 

of solar hot water collector area (actual capacity: 0.24 GW th 

, or 

340,000 m 2 ). 4 Supporting data were not available by early 2013 

to assess the remaining targets in India, Kenya, Pakistan, the 

Palestinian Territories, or Rwanda. As targets are set at varying 

degrees of strength and ambition, judging the “success” of 

these and other policy targets must be done with caution. 

Two countries with targets expiring in 2012 introduced new 

future targets. India’s 12th Five-Year Plan calls for a doubling 

of current renewables capacity to a total of 53 GW by 2017. 5 

The Palestinian Territories set a new target of a 10% renewable 

share of electricity generation by 2020, as well as capacity 

targets for a number of renewable energy technologies. 6 

In addition, the Economic Community of West African States 

(ECOWAS) ii and eight new countries introduced policy targets in 

2012. The 15 ECOWAS countries adopted a regional renewable 

energy policy that includes targets of 10% renewable energy 

penetration in the overall electricity mix by 2020 and 19% by 

2030. 7 In the Middle East, Qatar set a target of 2% renewable 

electricity generation from solar and 640 MW of solar PV 

capacity by 2020; Iraq announced a target of 400 MW of wind 

and solar capacity by 2016; and Saudi Arabia set targets of 24 

GW renewable power capacity by 2020 and 54.1 GW by 2032. 8 

In Eastern Europe, the Energy Community agreed to adopt EU 

Directive 2009/28/EC (see Figure 24), setting new 2020 renewable 

energy targets for Bosnia and Herzegovina (40%), Croatia 

(20%), the former Yugoslav Republic of Macedonia (28%), 

Montenegro (33%), and Kosovo (25%). 9 

Worldwide, a number of countries with existing targets added 

new complementary targets in 2012 and early 2013. In Europe, 

Albania (38%), Moldova (17%), Serbia (27%), and the Ukraine 

(11%) all set targets for renewable share of final energy. 10 

Austria set a target for renewables to meet 85% of electricity 

consumption by 2020; Denmark established more ambitious 

goals of a 35% renewable share of final energy by 2020, wind 

generation to account for 50% of total electricity consumption 

by 2020, and 100% of all energy demand from renewables 

by 2050; France doubled its target for solar electric projects 

in 2013, with a new aim to add 1,000 MW; Germany codified 

targets for 2030, 2040, and 2050 that had been introduced 

previously; the Netherlands increased its final energy target to 

16% by 2020, 2% higher than that mandated by the EU; Poland 

04 

i The increase in policies identified is based on the addition of new policies in 2012 and early 2013 as well as identification of a number of historic policies 

through further research. 

ii The 15 ECOWAS member states are: Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, 

Senegal, Sierra Leone, and Togo. 



Figure 24. EU Renewable Shares of Final Energy, 2005 and 2011, with Targets for 2020 

0 

5 10 15 20 25 30 35 40 45 50 55 % 

Total (EU-27) 

13% 20% 

Sweden 

Austria 

Latvia 

Finland 

Denmark 

Portugal 

Estonia 

Slovenia 

Romania 

France 

Lithuania 

Spain 

Greece 

Germany 

Italy 

Bulgaria 

Ireland 

Poland 


Hungary 

Netherlands 

Slovak Republic 

Czech Republic 

Belgium 

Cyprus 

Luxembourg 

Malta 

25% 

25% 

24% 

23% 

23% 

20.8% 

20% 

18% 

17% 

16 % 

16 % 

15% 

15% 

14.7% 

14% 

14% 

13.5% 

13% 

13% 

11% 

10% 

31% 

50% 

45% 

40% 

38% 

35% 

Baseline 2005 (for reference) 

Existing in 2011 i 

Target for 2020 

Source: 

See Endnote 9 


i See Table R10 for share percentages existing in 2011. 

66

announced its target to develop 1 GW of offshore wind capacity 

by 2020; the Russian Federation mandated the release 

of technology-specific targets to meet its 2020 renewable 

electricity target of 4.5%; and Scotland raised its near-term 

renewable electricity target from 31% to 50% by 2015. 11 

In Asia, the Chinese 12th Five-Year Plan for Renewable Energy 

set 2015 targets for 9.5% of primary energy consumption to 

come from renewables and for a total of 280 GW th 

(400 million 

m 2 ) of solar heating capacity. 12 Under the Phase II plan for the 

National Solar Mission, India extended its expiring solar water 

heating target (4.9 GW th 

, or 7 million m 2 ) to 5.6 GW th 

(8 million 

m 2 ) of new capacity to be added between 2012 and 2017; and 

Japan announced a target to develop 1,500 MW of new wave 

and tidal capacity by 2030. 13 Kazakhstan seeks to develop 1.04 

GW of renewable capacity by 2020. 14 

The Middle East and North Africa (MENA) region saw significant 

new developments in 2012 as the Egyptian Solar Plan, 

approved in July 2012, set a target for 2,800 MW of concentrating 

solar thermal power (CSP) and 700 MW of solar PV by 2027; 

Jordan adopted a target for 1,000 MW of renewable capacity by 

2018; and Libya set targets for the share of renewable energy 

in the national generation mix at 3% by 2015, 7% by 2020, and 

10% by 2025. 15 Elsewhere in Africa, Djibouti, which had no 

renewable power capacity as of 2009, has committed to a goal 

of 100% renewables by 2020; and the Kingdom of Lesotho set a 

target of 260 MW of renewable power capacity by 2030. 16 

Several countries and one Canadian province strengthened 

existing targets in 2012. (See Reference Tables R10–R12 in this 

report and Reference Tables R9–R11 in GSR 2012.) In addition 

to setting new targets, China increased existing targets, 

Sidebar 6. Current Status of Global Energy Subsidies 

According to the International Energy Agency (IEA), worldwide 

subsidies i for fossil fuel consumption amounted to an 

estimated USD 523 billion in 2011, an increase of 27% over 

2010—reflecting rising energy prices and increased consumption 

of subsidised fuels. The International Monetary Fund (IMF) 

estimates that on a “post-tax basis,” which also factors in the 

negative externalities from energy consumption, total subsidies ii 

for petroleum products, electricity, natural gas, and coal are 

much higher, at USD 1.9 trillion (2.5% of global GDP or 8% of 

total government revenues). Dr. Fatih Birol, the chief economist 

at the IEA, has called fossil fuel subsidies “public enemy 

number one to sustainable energy development.” 

Subsidies and financial support for renewable energy (excluding 

large hydropower) in 2011 totalled USD 88 billion, up 24% 

over 2010 but still only around one-sixth of fossil fuel subsidies. 

About 73% went to the electricity sector (mostly to support 

solar PV), and most of the rest went to biofuels, with very little 

used to support renewable heating or cooling. The European 

Union accounted for nearly 57% of these subsidies, and the 

United States for 24%. 

Well-designed subsidies for renewable energy can result in 

long-term economic and environmental benefits, including 

improved health, employment opportunities, and energy 

access and security. Conversely, the costs of subsidies 

directed at fossil fuels generally outweigh the benefits. Fossil 

fuel subsidies in energy-importing countries usually impose a 

heavy burden on national budgets, and in fossil fuel-exporting 

countries they can accelerate the depletion of resources due to 

wasteful consumption, thereby reducing future export earnings 

over the long term. 

In 2009, leaders of the G20 countries pledged to end fossil fuel 

subsidies, committing to “rationalize and phase out over the 

medium term inefficient fossil fuel subsidies that encourage 

wasteful consumption.” They acknowledged that fossil fuel 

subsidies distort markets, hamper investment in clean energy 

sources, and undermine efforts to mitigate the climate crisis. 

This step led to the establishment of a broader international 

coalition that includes Asia-Pacific Economic Cooperation 

(APEC) countries as well as many additional countries in 

which high energy prices have made subsidies financially 

unsustainable. 

At the G20 Finance Ministers Meeting in February 2013, leaders 

again committed to report on progress to rationalise and 

phase out fossil fuel subsidies, and to provide targeted support 

for the poorest people. Very little other international action 

has followed, with the exception of two reports on the scope 

of energy subsidies and suggestions for the implementation of 

their phaseout, published jointly by the IEA, OPEC, OECD, and 

World Bank. In addition, the IMF published a report in early 

2013 urging policymakers to reform subsidies for fossil fuel 

products, arguing that this could translate into major gains for 

both economic growth and the environment. 

The practical effect on a global basis has been minimal to date 

due to the lack of a timeline and an organisation to monitor and 

aid countries wanting to implement their commitments. A small 

number of countries have taken steps towards energy subsidy 

reform, and others—including fossil fuel-exporting non-OECD 

countries like Iran, Indonesia, Nigeria, and the Sudan—have 

begun to reduce subsidies. Further, since the G20 meeting 

in 2009, an increasing number of civil society observers has 

begun to track the issue of fossil fuel subsidies. 

At the same time, however, several OECD countries have begun 

to reduce subsidies for renewable energy sources, due largely 

to individual domestic political and economic circumstances, 

lower technology prices, and a lack of long-term policy guidance 

for renewables. 


04 

i The IEA defines subsidies as government measures that artificially reduce production costs or the price that consumers pay for energy, per IEA, “How Big Are 

Energy Subsidies and Which Fuels Benefit?” WEO 2011 Factsheet (Paris: 2011). 

ii The IMF defines consumer subsidies as the difference between a benchmark price and the price paid by energy consumers (including both households for 

final consumption and enterprises for intermediate consumption) and producer subsidies as the difference between a benchmark price and prices received by 

the supplier; the benchmark price for internationally traded energy products is the international price adjusted for distribution and transportation costs. The 

IMF estimate does not include all producer subsidies due to lack of data. 

67


pledging to install 49 GW of new renewable power capacity in 

2013, quadrupling its 2015 solar PV target to 21 GW, and raising 

its 2020 solar PV target from 20 GW to 50 GW. 17 Indonesia 

upped its renewable electricity target to 26% by 2025. 18 

Building on existing targets for 2020, Japan introduced higher 

technology capacity targets to continue development up to 

2030 for offshore wind (8.03 GW), geothermal (3.88 GW), biomass 

(6 GW), and tidal (1.5 GW) power; and Thailand increased 

its target for renewable share in final energy consumption to 

25% by 2022. 19 

Elsewhere, Mexico increased its target for renewable electricity 

to 35% by 2026, and Uruguay increased its 800 MW target for 

grid-connected wind power to 1 GW by 2015. 20 The Canadian 

province of Ontario brought forward its target of a total of 

10,700 MW of non-hydro renewable capacity from 2018 to 

2015. 21 

Two countries reduced targets during 2012: Nigeria lowered its 

technology-specific targets for wind, solar PV, and small hydro, 

although it increased targets for biomass; Portugal reduced its 

2020 target for installed renewable capacity by 18%, from 19.2 

GW to 15.8 GW. 22 

■■Power Generation Policies 

Worldwide, a number of policies have been enacted to promote 

renewable power generation. Developing countries and emerging 

economies accounted for over two-thirds of all countries 

with renewable power in place by early 2013. Although several 

policies were enacted in 2012 and early 2013, the number of 

new countries adding power generation policies has slowed 

significantly since 2010; however, existing policies are increasingly 

being revised and updated. 

The feed-in tariff (FIT) remains the most widely adopted 

renewable power generation policy employed at the national 

and state/provincial levels. As of early 2013, 71 countries and 

28 states/provinces had adopted some form of FIT policy. (See 

Reference Table 13.) Developing countries now account for the 

majority of countries with FITs in place, and for the five new FIT 

policies enacted in 2012. 23 Nigeria, the Palestinian Territories, 

Rwanda, and Uganda all implemented new FITs in early 2012. 24 

Jordan enacted a new FIT in late 2012 to complement the 

Renewable Energy and Energy Efficiency Law that was passed 

earlier in the year. 25 

Two countries set initial rates for FIT policies that they enacted 

in previous years. Following legislation calling for a national FIT 

in the Renewable Energy Act of 2008, the Philippines set tariffs 

for the first time in 2012. 26 Under the FIT that was called for in 

the wake of the 2011 Fukushima nuclear accident, Japan implemented 

tariffs for solar PV and wind power that were amongst 

the highest in the world. 27 

As in 2011 and 2010, the majority of activity surrounding FITs 

in 2012 involved revisions to existing policies. A few countries 

strengthened specific aspects of their FITs. France increased 

support to rooftop solar PV systems, raising the FIT rate by 5% 

and instituting a 10% FIT bonus for systems manufactured 

in Europe; Indonesia introduced a new FIT for biomass, 

substantially increased FIT rates for geothermal power, and 

indicated that tariffs for wind and solar will soon be introduced; 

and Ireland extended the list of technologies eligible for the 

new round of FIT support to include onshore wind, small-scale 

hydro, landfill gas, and biomass technologies. 28 

However, the majority of FIT-related changes maintained the 

2011 trend of rate reductions, with several countries lowering 

payments throughout 2012 and early 2013 in response to 

shifting economic and market conditions. Austria announced 

modest reductions to rates on most technologies and the elimination 

of the FIT for solar PV plants over 500 kW as of 2013; 

Bulgaria cut rates for wind by 10% and solar PV by 5–39%; 

Greece announced plans to retroactively cut solar PV FIT rates 

in early 2013; and Germany reduced support to solar PV by 

cutting FIT rates, setting a range of desired annual capacity 

additions, establishing limits on financial support, and allowing 

producers to switch between the FIT and feed-in premium 

schemes. 29 

Italy implemented installation caps, reduced FIT rates by 

39–43%, and added a number of new requirements; however, 

it simultaneously extended the contract term for wind projects 

from 15 to 20 years. 30 Luxembourg significantly lowered FIT 

rates for solar PV and ended FIT support for solar PV systems 

over 30 kW. 31 Serbia reduced rates for wind and solar projects 

but raised rates for small-scale hydropower, which was redefined 

to include plants up to 30 MW. 32 Spain temporarily suspended 

its FIT under Royal Decree in early 2012 and, in early 

2013, implemented retroactive FIT rate cuts for all PV installations 

dating back to 2009, and drastically reduced incentives to 

CSP. 33 Over the course of 2012, the United Kingdom significantly 

reduced rates for solar PV installations and lowered rates 

for large-scale wind projects and for small-scale renewables, 

while the Ukraine lowered rates for solar PV. 34 

Outside of Europe, Mauritius closed its under-50 kW FIT 

programme to new applications when its expanded cap of 3 

MW was reached; and Uganda removed its FIT for solar PV, 

although it increased FIT rates on hydropower plants between 

500 kW and 20 MW in early 2013, less than a year after the 

policy’s implementation. 35 

Although no new state or provincial level FITs were added 

in North America (a departure from previous years), some 

revisions were made to existing policies. In the United States, 

Vermont (one of five U.S. states with a FIT) strengthened 

incentives under its FIT scheme by raising rates for solar PV 

and small-scale wind by more than 10% and increasing the 

programme cap by 10% over the next 10 years. 36 Other state/ 

provincial level FITs were reduced in 2012. In Canada, Ontario’s 

scheduled FIT review resulted in bringing forward the targeted 

capacity date by three years, to 2015, but also reduced FIT 

rates for solar (20%) and wind (15%) under FIT 2.0. 37 While 

still included in the new FIT law, Ontario’s domestic-content 

requirement was struck down by the World Trade Organization 

in 2012. 38 In India, the state of Gujarat reduced rates for new 

solar PV projects commissioned after January 2012. 39 

Additional FIT policies under discussion during 2012 included 

support for solar power in Poland, to be enacted in 2013 or 

2014, and a proposed FIT in Saudi Arabia to help meet the 

country’s new targets (see Policy Targets section), which was 

expected to be confirmed in 2013. 40 

Renewable Portfolio Standards (RPS) or “quotas” are in place 

in 22 countries at the national level and 54 states/provinces in 

the United States, Canada, and India. China instituted a 15% 

renewable quota on utilities in an effort to connect existing 

capacity to the grid, and Norway enacted a quota policy in early 

2012. 41 There were no other quota policies identified that were 

enacted at the national level in 2012. 

68

In Europe, two existing RPS policies were altered in 2012. 

Poland increased utility quotas for renewable electricity by 1% 

per year, and Italy moved to phase out its existing RPS, which 

will be replaced with its FIT system. 42 In Asia, South Korea 

implemented the RPS policy that it enacted in 2010, as called 

for in the initial decree. 43 

No new RPS policies were adopted in the United States, 

but several existing policies were revised at the state level. 

Delaware established a solar PV requirement of 3.5% by 2026; 

Maryland brought the target date for the solar portion of its RPS 

forward two years to require a 2% solar contribution by 2020; 

New Hampshire increased the renewable quota to 24.8% by 

2025; and New Jersey increased the solar requirement to 4.1% 

by 2028. 44 There were efforts to reduce or repeal RPS laws in 

a number of states, although Ohio was the only state to reduce 

the renewables portion of its mandate, lowering it to 12.5%. 45 In 

addition, a number of states, such as New Hampshire, revised 

their eligibility requirements to allow for non-power generation 

technologies to qualify for the RPS. (See Heating and Cooling 

Policies section.) 

Renewable certificates are often utilised in tandem with RPS 

and quota systems. In early 2012, a common Norwegian- 

Swedish green certificate market was established with a target 

of developing 26.4 TWh of renewable capacity by 2020. 46 At 

the national level, Australia halved the number of tradable 

certificates allocated for the installation of small-scale solar 

PV systems, and Romania adopt a number of new regulations, 

including limiting new capacity development and the growth of 

new players, in an effort to make its green certificates scheme 

more attractive to investors. 47 

At the state and provincial level, certificate-related changes 

were made in the Indian state of Andhra Pradesh, which 

enacted a certificate mechanism under its new Solar Power 

Policy 2012; in the U.S. state of Arizona, which exempted the 

sale of Renewable Energy Certificates (RECs) from state sales 

tax; and in the Belgian regions of Brussels, Flanders, and 

Wallonia, which all decreased incentives under their separate 

green certificate schemes. 48 

Several countries have turned to public competitive bidding 

(also tendering or auctions) in recent years, with the number of 

countries rising from nine in 2009 to 36 by the end of 2011. 49 

A total of 43 countries were identified by early 2013, with 

30 of these countries classified as upper-middle income or 

lower. 50 Tendering schemes range from technology-specific to 

technology-neutral; include varying levels of capacity (some 

setting volume caps); occasionally set price ceilings; and often 

include various criteria for project selection so that price is not 

the only or most important factor. 51 

Throughout 2012 and early 2013, a number of countries 

held new tenders for the development of wind and solar 

technologies. Chile placed a call for bids for the construction 

of a CSP plant. 52 France held its first offshore wind tenders and 

approved 541 MW of new solar PV and CSP projects through 

government tenders. 53 Morocco began tenders for 2 GW of 

wind to be installed by 2020. 54 Saudi Arabia is turning to public 

tenders to award the first round of utility-scale PV and CSP 

projects towards its new solar targets. 55 At the state level, India 

is increasingly turning to tendering to deploy new renewable 

energy capacity. For example, Tamil Nadu released a tender 

for 1 GW of solar power in late 2012, and Andhra Pradesh 

announced plans to allocate 1 GW of new solar PV through a 

public tender in early 2013. 56 

Net metering polices exist in at least 37 countries—including 

Canada (in eight provinces) and the United States (in 43 states, 

Washington, D.C., and four territories). Three new policies 

were enacted in 2012: Brazil implemented a programme for 

small-scale power generation of 1 MW or less; Chile approved 

net billing legislation for renewables up to 100 kW; and Egypt 

enacted a net metering policy late in the year. 57 In addition, 

three existing policies were revised in 2012, including in two 

U.S. states: California nearly doubled the number of systems 

that qualify for its net metering programme, and Massachusetts 

doubled the allowance cap for its solar net metering programme, 

permitting up to 6% of peak demand to qualify. 58 In 

addition, Denmark reduced support for new solar PV installations 

through multiple revisions to its net metering programme, 

including limiting support to 10 years and reducing guaranteed 

sale prices. 59 

A host of fiscal incentives that are currently used to address 

the cost and finance barriers that impede the renewable 

energy sector were added or revised in 2012 and early 2013. 

In Cameroon, the value-added tax (VAT) was removed on all 

renewable energy products; India removed import duties 

on CSP equipment; Ireland extended a mechanism allowing 

corporations to deduct investments in renewable energy; Libya 

exempted all renewable energy equipment and components 

from customs duties; and Madagascar halved import taxes 

for renewable energy equipment. 60 In the United States, the 

Production Tax Credit (PTC), a major driver of development 

for wind power in particular, was extended through 2013. 61 

In addition, U.S. PTC eligibility requirements were revised to 

allow projects to qualify as long as they are under construction 

(rather than operational) before the end-2013 expiration. 62 Also 

in the United States, a 50% accelerated depreciation bonus 

was extended and the 1603 cash grant programme remained 

in place for existing projects, although new projects no longer 

qualify. 63 

As with FIT rates, several countries reduced subsidies to 

renewables during 2012. Belgium removed a tax credit for 

investments in geothermal, solar thermal, biomass, and biogas 

power plants. 64 India drastically reduced incentives for wind 

and solar power in 2012, including suspending the accelerated 

depreciation tax incentive and discontinuing the generationbased 

incentive (GBI); however, the GBI was reinstated in early 

2013. 65 Also in early 2013, payments to the Indian National 

Clean Energy Fund, a mechanism designed to support solar 

deployment under the National Solar Mission, were delayed. 66 

Beyond these reductions, a number of countries began levying 

taxes on technologies that they subsidised previously. Taxes 

on renewable energy installations were introduced by three 

countries in 2012: Bulgaria enacted temporary retroactive 

taxes on revenue from solar, wind, hydro, and biomass projects; 

Greece set a tax on consumers of renewable power in 2012, 

and subsequently raised it in early 2013; and Spain placed a 

7% flat tax on all forms of power generation, including renewables. 

67 In addition, the United States set two rounds of import 

tariffs on Chinese solar modules and cells as well as tariffs on 

wind towers imported from China and Vietnam as a result of 

ongoing trade disputes. 68 (See Sidebar 8, GSR 2012.) 

04 



Several countries continued to provide financial support to the 

research and development of new and more-efficient renewable 

technologies. For example, Australia provided USD 3.4 

million (AUD 3.3 million) to support 11 solar PV research projects; 

Japan provided USD 19 million to establish a programme 

promoting research and development of geothermal technologies; 

the Qatar National Research Fund began funding solar 

initiatives as part of the National Priorities Research Program; 

the United Kingdom pledged USD 31.5 million (GBP 20 million) 

to the development of wave energy; and the U.S. Department of 

Energy’s Advanced Research Projects Agency-Energy awarded 

USD 14 million to eight research projects. 73 

Elsewhere around the world, countries announced new support 

to renewable energy technologies. Australia pledged over 

USD 17.7 billion (AUD 17 billion) through the new Australian 

Renewable Energy Agency and Clean Energy Finance 

Corporation. 69 Azerbaijan announced plans to invest USD 8.9 

billion; Cyprus implemented investment subsidies to support 

the purchase and installation of new systems; China pledged 

an additional USD 1.1 billion in subsidies to its solar industry, 

bringing the year-end subsidy total to about USD 2 billion; 

Iran made USD 675 million (EUR 500 million) of the National 

Development Fund available to renewable energy projects; Iraq 

pledged USD 1.6 billion to meet its 2016 solar and wind targets; 

Scotland announced a new USD 162 million (GBP 103 million) 

fund to support renewable energy projects, including wave 

and tidal power; South Korea pledged USD 9 billion to develop 

2.5 GW of offshore wind by 2019; and the United Kingdom 

pledged USD 4.8 million to be allocated through the U.K. Green 

Investment Bank. 70 i 

In addition to new pledges, many subsidies to renewable energy 

were reduced in 2012. China retroactively reduced by 21% solar 

subsidies that were set earlier in the year under the Golden Sun 

programme. 71 In Europe, the Czech Republic announced that 

all renewables subsidies will be abandoned starting in 2014; 

Estonia reduced subsidies by 15–20%, and it maintained an 

eligibility cap for wind subsidies that it had previously pledged 

to remove; Spain removed all financial support for new renewable 

energy projects in January 2012; and the United Kingdom 

reduced support for solar PV by 20%, but simultaneously 

relaxed the existing subsidy cap on bio-power. 72 

■■Heating and Cooling Policies 

Countries continued to enact new policies and targets for the 

promotion of renewable technologies in the heating and cooling 

sectors during 2012. However, this sector still receives far less 

attention from policymakers than the renewable power sector 

does, even though there exists tremendous potential to provide 

heating (and cooling) with modern biomass, direct geothermal, 

and solar resources. 

Roughly 20 countries have specific renewable heating/cooling 

targets in place, including those for solar water heating. (See 

Reference Table R12.) In addition, at least 19 countries/states 

have heat obligations/mandates to promote the use of renewable 

heat technologies. (See Table 3.) 

Few new obligations were added in 2012. Denmark set new 

heat regulations that ban the installation of oil and natural gas 

fired boilers in new buildings as of 2013 and that ban oil boilers 

in areas with district heating or natural gas availability by 2016, 

effectively requiring that all heat be derived from renewable 

sources. 74 Kenya’s Energy (Solar Water Heating) Regulations 

2012 will require solar water heating to cover 60% of annual 

demand for buildings that use over 100 litres of hot water per 

day. 75 

In the United States, a developing trend saw the amendment 

of multiple state RPS policies to allow renewable heat to qualify 

towards the quota requirement. New Hampshire was the first 

state to expand its RPS policy to include mandatory quotas 

for the share of “useful thermal energy” from renewables; 

Maryland adopted revisions allowing certain new geothermal 

heating and cooling installations to qualify for the RPS, as well 

as thermal energy from biogas systems using animal waste 

as feedstock; and Ohio revised the list of eligible technologies 

to include both new and retrofitted CHP and waste-heat 

recovery systems. 76 Similar changes were under discussion in 

both Massachusetts and Colorado by the end of 2012. 77 While 

positive for its promotion, the inclusion of renewable heat in 

electricity RPS obligations could effectively reduce mandated 

targets for renewable electricity unless there are overall target 

increases to make up the difference. 

A number of fiscal incentives for renewable heat were adopted 

or revised in 2012, some in combination with measures to 

promote building efficiency. 78 (See Sidebar 7.) In Europe, 

Austria created a USD 135 million (EUR 100 million) fund to 

support building efficiency improvements that included grants 

for renewable heating, and the Czech Republic merged support 

i All currencies were converted to USD using exchange rates as of 4 February 2013. 

70

Sidebar 7. Linking Renewable Energy and Energy Efficiency 

Renewable energy deployment and energy efficiency 

improvements have slowed growth in fossil fuel consumption 

substantially, and they have the potential to play a crucial role 

in reducing future global greenhouse gas emissions. Efficiency 

will be the more important factor in the near term, whereas 

renewables will become increasingly important over time. The 

greatest potential could be achieved with the coordination 

of renewable energy and energy efficiency policies. To date, 

however, there has been little practical linkage of the two. 

Important synergies exist between renewable energy and 

energy efficiency. As the efficiency of energy use improves, 

renewable energy can more rapidly become an effective and 

significant contributor of energy. As the share of energy derived 

from renewable energy increases, less primary energy will be 

needed to meet energy demand due to reduced system losses. 

(See Feature, GSR 2012.) 

Over the past few decades, improvements in energy efficiency 

have reduced global energy intensity (total final energy 

consumption per unit of GDP) from 0.21 tonnes of oil equivalent 

(toe)/USD 1,000 in 1970 to 0.13 toe/USD 1,000 in 2010. Over 

this same period, average energy intensity has declined from 

0.16 to 0.08 toe/USD 1,000 in OECD countries and from 0.40 

to 0.21 toe/USD 1,000 in non-OECD countries. However, the 

global rate of decline in energy intensity has slowed considerably 

(from 1.2% per year on average during 1980–2000 to 

0.5% per year on average during 2000–2010) due in part to the 

ongoing shift of global economic activity towards developing 

countries. 

The potential for further energy efficiency improvements in all 

countries remains significant. The United Nations Industrial 

Development Organization (UNIDO) has estimated potential 

energy savings of 23–26% in the manufacturing sector 

worldwide: 30–35% in developing countries, and 15–20% in 

developed countries. Other studies show that in new and existing 

buildings, global final energy use for heating and cooling 

could be reduced by some 46% by 2050, compared with 2005 

levels, through full use of current best practices and energy 

efficiency technologies, while also increasing amenities and 

comfort. 

Policies to advance the use of renewable energy and energy 

efficiency technologies have often been designed independently, 

implemented by different stakeholders, and overseen 

by different government agencies. In the past, only sporadic 

efforts have been made to link the design and implementation 

of renewable energy policies with energy efficiency policies. 

The situation has begun to change, however, particularly at the 

local level. There is also increasing evidence of improved policy 

coordination and better communication among policymakers 

and stakeholders at the national level in some countries. 

For example, Germany is in the process of transforming its 

energy sector through the “Energiewende” (Energy Transition) 

programme, which focuses on significant, long-term investments 

in energy infrastructure combined with advances in both 

renewables and energy efficiency in all economic sectors. 

Italy’s new “National Energy Strategy” gives highest priority 

to the design and implementation of renewable energy and 

energy efficiency measures, aiming beyond EU 2020 targets, 

to help spur economic growth. The strategy is expected to drive 

new investments worth USD 232 million (EUR 180 million) 

through 2020, while avoiding expenditures on energy imports 

worth approximately 1% of Italy’s 2012 GDP (current values). 

In the United States, the Environmental Protection Agency is 

encouraging state, tribal, and local agencies to consider incorporating 

renewable energy and energy efficiency policies and 

programmes in their State and Tribal Implementation Plans. 

There is also increased awareness of the impact that consumer 

behaviour has on adoption rates for renewable energy options 

and energy efficiency products. In recent decades, consumer 

behaviour strategies were considered to be add-ons to technology-focused 

programmes. It is now recognised, however, that 

consumer behaviour strategies are integral to successful policy 

planning and implementation, and more emphasis is being 

placed on smarter habits and lifestyles. 

Another trend is towards a more strategic and coordinated 

approach by organisations that are focused on sustainable 

development linked with renewables and energy efficiency. 

International organisations are cooperating actively to develop 

an agenda for a sustainable future in developing countries. For 

example, in 2011 the World Bank and the Global Environment 

Facility (GEF) approved “Green Energy Schemes for a Low- 

Carbon City,” a project that integrates energy efficiency and 

clean energy technologies to reduce greenhouse gas emissions 

in the Changning District of Shanghai. The Inter-American 

Development Bank and the Japanese Trust Fund Consultancy 

are developing a pilot project in Mexico to combine renewable 

energy (especially solar PV) and energy efficiency for lowerincome 

residences connected to the electric grid. And the 

UN Food and Agriculture Organization (FAO) has launched a 

multi-partner programme to increase energy efficiency and 

renewable energy in the agri-food chain, while improving 

energy access in rural areas. 

Most significant is the UN initiative “Sustainable Energy for All” 

(SE4ALL), which aims to provide universal access to modern 

energy services, improved rates of energy efficiency, and 

expanded use of renewable energy sources across the globe by 

2030. As of December 2012, more than 50 governments from 

Africa, Asia, Latin America, and the Small Island Developing 

States (SIDS) had joined this initiative and were developing 

energy plans and programmes, while businesses and investors 

had committed over USD 50 billion to achieve SE4ALL’s 

objectives. 


04 

71


for all renewable energy, heat, and power production into one 

law and instituted a renewable heat bonus of USD 2.60/GJ 

(EUR 2.00/GJ) for systems that deliver heat to district heating 

networks or for industry. 79 In Denmark, a number of financial 

provisions were established to promote renewable heating, 

including a new fund of USD 7.6 million (DKK 42 million) to 

facilitate the conversion of oil and gas heat to renewable heat 

and USD 6.3 million (DKK 35 million) to promote new renewable 

technologies, including large heat pumps. 80 

Germany increased subsidies for renewable heat projects; 

Italy approved a grant scheme for renewable heating systems 

with an eye towards enacting a FIT in the coming years; and 

Luxembourg strengthened a support mechanism for renewable 

energy in the building sector, including a USD 2,600 (EUR 

2,000) increase in support for geothermal heat pumps, per 

household. 81 In addition, Portugal enacted a new USD 1.35 

million (EUR 1 million) grant scheme to support the installation 

of solar thermal systems on existing buildings; and the United 

Kingdom reopened the Renewable Heat Premium Payment 

grant programme and released proposed rates for the domestic 

portion of the Renewable Heat Incentive FIT, which was 

expected to be enacted in summer 2013. 82 

Elsewhere, Uruguay implemented a number of new incentives 

for solar thermal technologies, including tax exemptions 

for solar heating equipment; India enacted a new national 

programme to provide financial support for the development of 

CSP for heat applications; and the Indian state of Uttarakhand 

increased existing rebates for solar water heaters. 83 

Not all changes were supportive of renewable heat. The 

Canadian ecoENERGY Retrofit-Homes programme, which 

included grants to homeowners installing solar water heaters, 

was allowed to expire, and the Energy Ministry has suggested 

removing legislation requiring 2% renewable content in home 

heating oil. 84 In New Zealand, a grant scheme to support solar 

water heaters expired in mid-2012. 85 

■■Transport Policies 

Policies supporting the use of renewable fuels in the transport 

sector have been identified at the national level in 49 countries 

as of early 2013, up from 46 identified in GSR 2012. Common 

policies include biofuel production subsidies, biofuel blend 

mandates, and tax incentives. Blending mandates have been 

identified in 27 countries at the national level and in 27 states/ 

provinces. (See Reference Table R15.) 

Biofuel support policies in Europe and the United States continued 

to come under pressure from groups concerned about the 

potential impacts of fuel crops on food production and on land, 

biodiversity, and water, as well as net greenhouse gas emissions 

from biofuels life-cycle processes. As a result, some major 

markets are facing increasing pressure to move away from supporting 

both first-generation and advanced feedstock biofuels. 

The European Commission proposed setting a 5% cap on 

the first-generation biofuel share of total transport fuels and 

eliminating subsidies for food crop-based biofuels production 

by 2020, while at the same time allowing fourfold counting of 

the shares of advanced biofuels. 89 Although it is unlikely that 

these changes will be acted on in 2013, the proposals have had 

an impact on the sector including in Austria, which temporarily 

suspended the introduction of E10 pending clarification on EU 

biofuel regulations. 90 In the United States, the Renewable Fuels 

Standard remained in place despite significant pressure to 

waive it in the face of drought conditions. 91 For the second year 

in a row, however, the cellulosic fuel component of the target 

was reduced, cut from 1.9 billion litres (500 million gallons) to 

39.7 million litres (10.5 million gallons). 92 

Changes in fiscal support for biofuels continued throughout 

2012 and early 2013. The U.S. biofuels industry benefitted from 

an extension of the USD 1.01/gallon (USD 0.27/litre) tax credit 

for cellulosic ethanol production and the reintroduction of the 

USD 1/gallon (USD 0.26/litre) biodiesel tax credit. 93 Australia 

pledged USD 15.7 million (AUD 15 million) in grants for the 

development of advanced biofuels. 94 Brazil doubled an earlier 

pledge to support the development of new techniques for creating 

fuel from sugarcane bagasse, committing nearly USD 1 billion 

(BRL 2 billion) in loans and grants through 2014. 95 However, 

existing support was allowed to expire in New Zealand, where 

the biofuels grant scheme ended in June 2012, and in the 

United Kingdom, where the duty differential on biofuels from 

used cooking oil closed out in early 2012. 96 

Electric vehicles (EVs) can be an important complement to 

renewable energy development, as they offer the potential to 

fuel vehicles with renewable electricity and to serve as a form of 

electricity storage from renewables. Many countries continued 

to support the development of markets for EVs and the linkage 

to renewable energy. This includes countries in the EU, where, 

since 2009, electricity from renewable energy used in electric 

vehicles has received preferential standing towards meeting the 

10% renewable transport mandate, accounting for 2.5 times 

the energy content of the electricity input. 97 As of early 2013, 

New blend mandates were introduced in 2012 by South Africa 

with an E10 mandate; by Turkey, which implemented an E2 

mandate in early 2013; and by Zimbabwe, which approved 

an E5 mandate. 86 The Canadian province of Saskatchewan 

enacted a B2 blend mandate to complement its existing E8.5 

blend mandate. 87 

During 2012, three countries enacted or revised their existing 

biofuel blend policies. India began enforcing a national E5 

mandate that was initially intended to apply in 2006; Thailand 

increased its biodiesel blend mandate from B4 to B5; and the 

U.S. Environmental Protection Agency (EPA) increased the 

biodiesel volume requirement for 2013 to 4.85 billion litres 

(1.28 billion gallons), up from 4.16 billion litres (1.1 billion 

gallons) in 2012. 88 

72

government targets called for an estimated 20 million EVs in 

operation by 2020, up from the approximately 40,000 in use at 

the end of 2012; some estimates have anticipated annual sales 

of 3.8 million EVs by 2020. 98 In 2012, India unveiled targets for 

7 million electric and hybrid vehicles by 2020. 99 

■■Green Energy Purchasing and LabelLing 

Labels for “green” energy, similar to those employed for energy 

efficiency, offer consumers added information when purchasing 

energy. Green energy labelling provides these consumers the 

opportunity to purchase “green” electricity as well as “green” 

biogas, heat, and transport fuels by evaluating the generation 

source of available energy supply options. Green power labels 

are employed in a number of countries around the globe, 

although government adoption remains slow. Among those promoted 

by NGOs by early 2013 were the Italian “100% Energia 

Verde”; the trans-European “EKOenergy” label covering 16 

countries; the “Green-e Energy” label in the United States; and 

the “ok-power” label in Germany. 100 

In addition to voluntary green purchasing by individual and 

business energy consumers, a number of governments require 

utilities or electricity suppliers to offer green power products. 

In addition, governments themselves have committed to 

purchasing green energy to meet their own energy needs. New 

national-level policies to support green purchasing continue to 

be slow to develop even as renewable energy is being adopted 

increasingly worldwide. 

■■City and Local Government Policies 

Thousands of cities and towns around the world have active 

plans and policies to advance renewable energy. Despite the 

slowdown at the national level in 2012, policy momentum 

continued to accelerate at the local level as city governments 

took actions to generate employment, plan for rising energy 

demand, cut carbon emissions, and make cities more liveable. 

City governments have advanced initiatives and policies 

that complement and in many cases go beyond national level 

policies and programmes (see Reference Table R16); in turn, 

national governments often observe actions on the subnational 

level as test cases, and, if they prove successful, are more 

willing to use them as blueprints on the national level. 101 

Several cities are working with their national governments 

to advance renewable energy. In India, over 50 cities have 

launched new municipal policies and initiatives in response to 

the national “solar cities” programme, and, in Japan, 15 cities 

were moving forward as “model communities” by the end 

of 2012, propelled by a new federal support programme for 

renewable energy community projects. 102 i In Brazil, Indonesia, 

India, and South Africa, a process was initiated in 2012 to 

select eight model cities to outline low-emissions development 

strategies, including the deployment of renewables, using a 

common methodology developed for local governments. 103 

Elsewhere, particularly in the EU and United States, cities have 

begun to organise themselves from the bottom up, complementing 

or moving beyond national and state legislation. 

In Europe, the Covenant of Mayors has seen a significant 

increase in signatories, with 1,116 new cities and towns joining 

in 2012, committing to a 20% CO 2 

reduction target and plans 

for climate mitigation, energy efficiency, and renewable 

energy. 104 In Germany, cities are evaluating the implications 

of the “Energiewende” and adapting measures to address the 

variability of solar and wind power and to shift consumption 

patterns. 105 

Local governments around the world continued to establish 

new climate and energy plans in 2012, based on renewable 

energy and energy efficiency, and to reinforce existing plans. 

In Denmark, Copenhagen set the goal of becoming the world’s 

first carbon-neutral capital city by 2025, building on its 2009 

climate plan, and Frederikshavn, also a long-time frontrunner 

in renewable energy, announced a new target to become 100% 

fossil fuel-free by 2030. 106 Helsinki in Finland and the U.S. city 

of Seattle in Washington State also aim for carbon neutrality, 

both by 2050. 107 In Japan, the Fukushima Prefecture set a 

target to become 100% energy self-sufficient using renewable 

energy by 2040. 108 South Korea’s capital Seoul announced a 

2020 target to achieve 20% renewable electricity, and China’s 

largest city, Shanghai, published a 12% renewable energy 

target by 2015 and set technology-specific installations targets, 

including 150 MW of solar PV. 109 

In order to achieve their ambitious targets, many local governments 

are moving towards municipal ownership or control 

of local power distribution and generation infrastructure. 

Municipally owned or controlled utilities allow for the greater 

participation of local governments and citizens in the planning 

and development of renewable energy, enabling local governments 

to directly advance utility investments, targets, or promotion 

policies that encourage private investment in renewables. 

Several U.S. cities with locally owned utilities adopted feed-in 

04 

i The programme aims to help cities build capacity and facilitate local renewable energy projects. This includes helping selected cities with organising local 

renewable energy councils, appointing local coordinators, making concrete business plans, exploring fundraising options, building social consensus, and 

starting business projects (within three years). 



tariffs (FITs) in 2012 to reach existing renewable electricity 

targets and to complement state-level renewable portfolio 

standards (RPS). Following on the success of the 2009 solar FIT 

in Gainesville, Florida, the cities of Los Angeles and Palo Alto in 

California, as well as Long Island in New York, adopted FITs for 

solar projects in 2012; the FIT in Marin County, California, was 

strengthened in 2012 to offer 20-year fixed-price contracts; 

and Fort Collins in Colorado approved plans to launch FIT 

programmes effective in 2013. 110 

Local governments can also participate in profit-sharing 

schemes with local utilities. The Japanese cities of Odawara 

and Shizuoka established local energy companies through 

public-private partnerships to advance renewable community 

power projects in 2012, and the Saudi municipality of Mecca 

opened a tender for contracts to build and operate a 100 MW 

renewable energy power plant, which will be transferred to the 

city once the contracts recoup their investments. 111 

In some cases, city utilities have formed consortia to fund 

projects jointly. For example, a group of 33 German municipal 

utilities invested in a 400 MW offshore wind farm in the North 

Sea that will begin commercial operations in 2013. 112 Local 

community and cooperative investment models are also 

increasing in popularity. A citizens’ cooperative in Berlin 

announced its official interest in buying the city’s electricity 

network, under concession to Vattenfall Europe until 2014, 

joining the other 192 distribution networks in Germany that 

have remunicipalised since 2007. 113 Iida in Japan announced 

a municipal regulation in 2012 to facilitate community-based 

renewable energy project development. 114 

Local governments are also enacting fiscal incentives such as 

rebates and tax credits to facilitate renewable energy deployment. 

Valencia in Spain enacted a support programme that 

subsidises up to 45% of project costs, with additional support 

for small businesses and individuals. 115 Joining San Francisco, 

Los Angeles County, and Washington, D.C., 142 U.S. cities 

signed on to the California Property Assessed Clean Energy 

“PACE” programme, wherein cities borrow funds from investors 

and lend these funds to local property owners to finance energy 

efficiency and renewable energy additions. Owners repay loans 

through voluntary increases in property taxes, and these loans 

can be transferred to new owners if properties are sold. 116 

Other cities are leading by example and setting targets to power 

their municipal operations and/or using city property for renewable 

energy installations. In 2012, several cities and towns in 

India—including Rajkot, Jind, and Agratala—installed renewable 

energy systems for their own use to further their targets to 

reduce fossil fuel consumption. 117 Seoul announced that it will 

install solar PV panels on 1,000 schools by 2014, and Dhaka 

in Bangladesh is deploying solar street lights and traffic lights 

to enhance public awareness of renewable energy. 118 At least 

two cities achieved own-use targets in 2012: Calgary in Canada 

used 100% renewable electricity for its municipal operations, 

and the U.S. city of Houston, Texas, aimed to purchase 438 

GWh, or 35% of the annual electricity consumption of city facilities, 

from renewables (mostly wind). 119 

In the building sector, local governments are moving away from 

traditional “percentage savings” goals to “near-zero” or “netzero” 

energy-use goals that include on-site renewable energy. i 

To achieve these goals, several cities are advancing new building 

codes, standards, and demonstration projects. In 2012, 

Bhopal became home to India’s first net-zero building, which 

produces 100% of its electricity and cooling needs on-site with 

solar PV that is integrated with energy storage and management 

systems. 120 Hong Kong unveiled its first net-zero building, 

designed to run on solar power and biodiesel derived from 

waste cooking oil. 121 In the United States, Seattle launched a 

Living Building Pilot programme to encourage the development 

of 12 “living buildings ii ” over the next three years and to assess 

the adoption of the living building standard as the baseline for 

future city development; and Lancaster, California, mandated 

the installation of 1–1.5 kW solar systems on new single-family 

homes built as of 1 January 2014. 122 

In the quest for low-energy buildings, local governments are 

increasingly mandating solar water heating (SWH)—moving 

away from heating water with electricity. Spurred on by 

national targets, several cities in India, and Cape Town and 

Johannesburg in South Africa, are encouraging the use of SWH. 

In India in 2012, Surat made SWH mandatory in all buildings, 

and Chandigarh, Kolkata, Howrah, Durgapur, and Siliguri 

made installation mandatory in all multi-storied commercial 

i Net-zero buildings produce at least as much energy as they consume, using renewable energy sources. This can include generating energy from renewable 

energy sources on-site or purchasing electricity generated from renewable energy. Near-zero energy buildings produce/purchase slightly less energy than the 

energy that they consume. 

ii The International Living Building Challenge (ILBC) is a certification scheme that rates buildings, communities, and infrastructures. There are more than 90 

Living Building projects in operation or being developed around the world—particularly in Australia, Canada, Ireland, Mexico, and the United States. In order to 

become certified, “Living Buildings” must meet 100% of their energy demands from on-site renewable energy systems (net-zero-energy), capture and treat the 

building’s own water needs for at least 12 continuous months at full occupancy, and meet standards for sustainable materials and indoor environmental quality. 

See more details at the International Living Building Institute Web site, http://living-future.org/lbc. 

74

establishments, including hospitals and five-star hotels. 123 

Johannesburg launched its “Solar Water Heater Programme” 

with the aim to provide SWH to 110,000 poor and low-income 

households over the next three years. 124 Cape Town launched 

two programmes in 2012: one provides free SWH installations 

for poor households and the other makes SWH available to midto 

high-income households through monthly repayment rates 

below the cost of electricity saved through the installation. 125 In 

Asia, Beijing in China now requires new buildings and swimming 

pools to install SWH, and Kyoto in Japan made the installation of 

3 kW solar PV or SWH mandatory in all large buildings. 126 

Other cities are using renewable energy for space and industrial 

heating and even for cooling. The use of district heating 

and cooling is becoming a best practice for the integration of 

renewable energy in cities, particularly in dense areas. Many 

are advancing local district heating/cooling with renewables 

in heat-only or combined heat and power (CHP) configurations. 

New York was the first U.S. city to require the use of 

“bio-heat”—every gallon of oil heat used must be at least 2% 

biodiesel. 127 Vancouver adopted a “Neighbourhood Energy 

Strategy” in 2012 that aims to develop, expand, and convert 

existing steam heat systems to utilise local geothermal, solar, 

and sewage resources as it works towards its goal to become 

the World’s Greenest City by 2020. 128 Braedstrup in Denmark 

expanded its solar collector area from 8,000 m² to 18,600 m² 

( 5.6 MW th 

to 13 MW th 

) in 2012, to feed heat into its district 

network; and Dunedin in New Zealand installed a 1,100 kW 

wood chip boiler to supply seven campus buildings at the 

University of Otago. 129 

Yet other cities are building on-site CHP plants that use a variety 

of renewable fuels. For example, in 2012, Aberdeen in Scotland 

approved plans to build a CHP biomass plant to generate 

electricity and to provide 90% of the heat required for its paper 

mill; Aarhus in Denmark approved the construction of a 110 

MW straw-fired CHP plant to achieve its objective of becoming 

carbon-neutral by 2030. 130 

Solar cooling is a new area for cities, with exploration under way 

mostly in areas with a district heating system and a cool water 

source close at a hand. In 2012, Singapore became home to 

the largest solar cooling system in the world, utilising a collector 

area of 3,900 m² (2.7 MW th 

). 131 

Cities are also tapping their geothermal potential to advance 

renewable heating and generate power. Kidapawan in the 

Philippines approved construction of the city’s third geothermal 

plant in 2012. 132 The U.S. city of Philadelphia, Pennsylvania, 

deployed the first U.S. commercial-scale geothermal system 

to heat buildings using domestic waste water. 133 Munich, 

Germany, in support of its target to have a fully renewable 

district heating system by 2040, has identified 15 sites where 

it can exploit geothermal energy, with the first due to come on 

line in 2013. 134 

In their efforts to green transport systems, several cities— 

including Bogota in Colombia, Guangzhou in China, and Mexico 

City—are promoting the use of plug-in hybrid and electric 

vehicles, while others are increasingly coupling the deployment 

of these vehicles with renewable energy. 135 The Brazilian city of 

Curitiba acquired 60 new hybrid electric and biodiesel vehicles 

for its bus fleet. 136 In the Netherlands, Amsterdam reinstated 

a USD 13,640 (EUR 10,000) subsidy for new electric taxis and 

continued to reimburse up to 50% of the additional cost for 

EV purchases to advance the city’s goal of 100% renewable 

energy-powered electric transport by 2040. 137 Also in 2012, 

Barcelona in Spain installed the world’s first wind-powered EV 

charging station, and Melbourne in Australia launched its first 

solar-powered charging station. 138 

“Smart city” initiatives i continue to advance as cities around 

the world transition towards low-carbon and sustainable 

infrastructure. In 2012, Fujisawa in Japan approved construction 

of the Fujisawa Sustainable Smart Town project, which will 

include installation of solar power systems in residential areas 

and public buildings, and will promote the use of renewably 

powered electric cars and bikes. 139 In Germany, the city utility 

in Krefeld implemented smart meters in 200 households to 

provide real-time energy use data and price fluctuations to consumers 

via their smart phones (to incentivise customers to shift 

consumption), and Munich partnered with Siemens to launch a 

20 MW virtual power plant that pools and operates small-scale, 

distributed energy sources as a single installation. 140 Also in 

2012, Buzios in Brazil was completed, thereby becoming the 

first smart city in Latin America; it will soon be followed in 2013 

by Chile’s demonstration project Smart City Santiago. 141 

An increasing number of cities voluntarily reported on their 

climate and energy actions in 2012 as they sought to share 

and scale-up best practices. For example, the carbonn Cities 

Climate Registry (cCCR) reported 561 voluntary climate 

commitments and 2,092 mitigation and adaptation actions 

undertaken by 300 cities in over 25 countries, up from 51 cities 

in 2011. 142 Local governments continued to join forces in 2012, 

as reflected in increases in the membership of city networks 

around the world. For example, 77 cities became signatories to 

the Mexico City Pact in 2012, bringing the total number to 285; 

the C40 Cities Initiative had 63 affiliated cities as of December 

2012; and the EU Covenant of Mayors had almost 5,000 

signatories as of early 2013. 143 These platforms, networks, 

and organisations also continue to partner with each other to 

advance coordinated action. 

04 

i Smart city projects use information and communication technologies (ICT) to develop smart energy systems that enhance energy efficiency, maximise the 

integration and use of renewable energy in buildings and in the local power grid, and integrate EVs in effective ways. 



Table 3. Renewable Energy Support Policies (Continued) 

• indicates national level 

policy 

• indicates state/ 

provincial level policy 

Regulatory Policies and Targets Fiscal Incentives Public 

Financing 

Renewable energy 

targets 

High Income Countries $$$$ 

Feed-in tariff/ 

premium payment 

Electric utility 

quota obligation/ 

RPS 

Net metering 

Biofuels obligation/ 

mandate 

Heat obligation/ 

mandate 

Tradable REC 

Capital subsidy, 

grant, or rebate 

Investment or 

production tax 

credits 

Reductions in 

sales, energy, CO 2 

, 

VAT, or other taxes 

Australia • • • • • • 

Austria • • • • • • • 

Barbados • • • 

Belgium • • • • • • • • 

Canada • • • • • • • • • • 

Croatia • • • • 

Cyprus • • • • 

Czech Republic • • • • • • • • 

Denmark • • • • • • • • • 

Estonia • • • • • 

Finland • • • • • • • 

France • • • • • • • • • 

Germany • • • • • • • • • 

Greece • • • • • • • 

Hungary • • • • • • 

Ireland • • • • • • 

Israel • • • • • • • 

Italy • • • • • • • • • • • • 

Japan • • • • • • • • 

Luxembourg • • • • • 

Malta • • • • • 

Netherlands • • • • • • • • • • 

New Zealand 

• 

Norway • • • • • • 

Oman • • • • 

Poland • • • • • • • • 

Portugal • • • • • • • • • • • 

Singapore • • • 

Slovakia • • • • 

Slovenia • • • • 

South Korea • • • • • • • • • 

Spain 1 • • • • • • • • • 

Sweden • • • • • • • • 

Switzerland • • • • 

Trinidad and Tobago • • • 

United Arab Emirates • • • • • • 

United Kingdom • • • • • • • • • • 

United States • • • • • • • • • • • • 

Energy production 

payment 

Public investment, 

loans, or grants 

Public competitive 

bidding/ tendering 

1 In Spain, the feed-in tariff (FIT) and net metering programmes have been temporarily suspended by Royal Decree for new renewable energy projects; this 

does not affect projects that have already secured FIT funding. The Value Added Tax (VAT) reduction is for the period 2010–12 as part of a stimulus package. 

Note: Countries are organised according to GNI per capita levels as follows: “high” is USD 12,476 or more, “upper-middle” is USD 4,036 to USD 12,475, 

“lower-middle” is USD 1,026 to USD 4,035, and “low” is USD 1,025 or less. Per capita income levels and group classifications from World Bank, 2012. Only 

enacted policies are included in the table; however, for some policies shown, implementing regulations may not yet be developed or effective, leading to lack of 

implementation or impacts. Policies known to be discontinued have been omitted. Many feed-in policies are limited in scope of technology. 


76



Financing 


policy 




targets 



Upper-Middle Income Countries $$$ 



RPS 

Net metering 


mandate 


mandate 

Tradable REC 



Investment or 


credits 

Reductions in 


, 


Algeria • • • 

Argentina • • • • • • • • • 

Belarus 

• 

Bosnia and Herzegovina • • • • 

Botswana • • • 

Brazil • • • • • • • • 

Bulgaria • • • • • • 

Chile • • • • • • • 

China • • • • • • • • • • 

Colombia • • • 

Costa Rica • • 

Dominican Republic • • • • • • • • 

Ecuador • • • 

Grenada • • • 

Iran • • • • 

Jamaica • • • • • • 

Jordan • • • • • • • 

Kazakhstan • • 

Latvia • • • • • • 

Lebanon • • • • • 

Libya • • 

Lithuania • • • • • • 

Macedonia • • 

Malaysia • • • • • • • 

Mauritius • • 

Mexico • • • • • • 

Montenegro • • 

Palau • • 

Panama • • • • • • 

Peru • • • • 

Romania • • • • • • 

Russia • • 

Serbia • • • 

South Africa • • • • • • 

St. Lucia • • 

Thailand • • • • • 

Tunisia • • • • • 

Turkey • • • • • 

Uruguay • • • • • • • • • 

Lower-Middle Income Countries $$ 

Armenia 

• 

Cameroon 

• 

Cape Verde • • • • • 

Côte d’Ivoire • • 

Egypt • • • • • • 

El Salvador • • • • • 


payment 





04 





policy 




Financing 


targets 





RPS 

Net metering 


mandate 


mandate 

Tradable REC 



Investment or 


credits 

Reductions in 


, 


Fiji • • • 

Ghana • • • • • 

Guatemala • • • • • • 

Guyana • • 

Honduras • • • • 

India • • • • • • • • • • • • • 

Indonesia • • • • • • • • • 

Lesotho • • • • • • • • 

Marshall Islands • • 

Micronesia • • 

Moldova • • • • 

Mongolia • • • 

Morocco • • • 

Nicaragua • • 

Nigeria • • • • 

Pakistan • • • • • 

Palestinian Territories 2 • • • • • 

Paraguay • • 

Philippines • • • • • • • • • • • 

Senegal • • • • 

Sri Lanka • • • • • • • • • 

Sudan • • 

Syria • • • • • 

Ukraine • • • • 

Vietnam • • • • 

Low Income Countries $ 

Bangladesh • • • • 

Burkina Faso • • • • 

Ethiopia • • • • 

Gambia 

• 

Guinea 

• 

Haiti 

• 

Kenya • • • • 

Kyrgyzstan • • • 

Madagascar • • 

Malawi • • • 

Mali • • 

Mozambique • • • 

Nepal • • • • • • 

Rwanda • • • • 

Tajikistan • • 

Tanzania • • • 

Togo 

• 

Uganda • • • • • 

Zambia • • • 


payment 





2 The area of the Palestinian Territories is included in the World Bank country classification as “West Bank and Gaza.” They have been placed in the table using 

the 2009 “Occupied Palestinian Territory” GNI per capita provided by the United Nations (USD 1,483). 

78

Policy MAPS 

FIGURE 25. COUNTRIES WITH RENEWABLE ENERGY POLICIES, EARLY 2013 

Number of Policy 

Types Enacted 

9 – 13 

6 – 8 

3 – 5 

1 – 2 

no policy or no data 

138 

COUNTRIES 

have defined 

renewable 

Energy Targets 

Figure 26. COUNTRIES WITH RENEWABLE ENERGY POLICIES, 2005 

04 

Support policies are in place in 

127 COUNTRIES 

two-thirds of these are 

developing and emerging economies 

GSR 

2013 

79

05 

The South Pacific nation of Tokelau, 

home to around 1,400 people, 

recently went 100% renewable through 

a combination of solar PV and biofuel 

derived from coconuts. 

A number of countries are developing 

large-scale programmes that address 

the dual challenges of energy access 

and sustainability through the use 

of renewable energy. 

Source: NASA

05 RURAL RENEWABLE ENERGY 

Access to modern energy services is essential for economic 

growth and is indispensable to sustainable human development. 

Worldwide, roughly 1.3 billion people continue to lack 

access to electricity and 2.6 billion rely on traditional biomass 

stoves and open fires for cooking and heating. 1 More than 99% 

of people without electricity live in developing regions, and 

four out of five of them are in rural South Asia and sub-Saharan 

Africa. 2 

Renewable energy can play an important role in providing 

modern energy services to the billions of people who depend on 

traditional sources of energy, often relying on kerosene lamps 

or candles for lighting, traditional biomass for cooking and 

heating, and expensive dry-cell batteries to power radios for 

communications. In many rural areas of developing countries, 

connections to electric grids are economically prohibitive or 

may take decades to materialise. Today, there exists a wide 

array of viable and cost-competitive alternatives to traditional 

bioenergy and to grid electricity and carbon-based fuels 

that can provide reliable and sustainable energy services. 

Renewable energy systems offer an unprecedented opportunity 

to accelerate the transition to modern energy services in 

remote and rural areas. 

Rural renewable energy markets in developing countries show 

significant diversity, with the levels of electrification, access to 

clean cookstoves, financing models, and support policies varying 

greatly among countries and regions. Due to the diversity 

of situations as well as to the variety of renewable technologies, 

typologies, and applications, the actors in this field are very 

diverse as well, and differ from one region to the next. They 

range from small private distributors of solar lanterns, pico-hydro 

systems, and modern cookstoves, to national governments, 

international nongovernmental organisations (NGOs), and 

development banks. 3 

The primary actors in the rural renewable energy sector 

include: end users (private individuals and communities); 

national, regional, and local governments; utility companies; 

rural electrification agencies; development banks and 

multilateral organisations; international and national development 

agencies; NGOs; private donors; and manufacturing 

and installation companies. They also include up-and-coming 

private investment companies, operations and maintenance 

(O&M) entities, system integrators, national-level importers, 

regulators, extension agents, local technicians and industries, 

microenterprises, and microfinance institutions (MFIs). 

The large diversity in the field and lack of coordination make 

data collection and impact assessment challenging, resulting 

in the absence of consolidated and credible data. In addition, a 

large portion of the market for small-scale renewable systems is 

paid in cash, and such sales are not tracked, making it difficult 

to detail the progress of renewable energy in remote and offgrid 

areas in all countries. Data are available, however, for many 

individual programmes and countries. This section seeks to 

update the status of the rural renewable energy markets based 

on information obtained from a large network of experts. 

■■Renewable Technologies for Rural Energy 

The year 2012 brought improved access to modern energy 

services through the use of renewables. Rural use of renewable 

electricity has increased with greater affordability, improved 

knowledge about local renewable resources, and more 

sophisticated technology applications. Attention to mini-grids 

has risen in parallel with price reductions in wind, solar inverter, 

gasification, and metering technologies. 

Technological progress also advanced the rural heating and 

cooking sectors, while programmes to educate rural populations 

about the benefits of clean cooking solutions and other 

modern energy services solutions continued to gain popularity. 4 

In addition, there was a continuation of programmes that focus 

on local training for repair and maintenance of small renewable 

energy systems, which is important because service costs in 

remote areas and islands are often prohibitive. 5 

Solar PV prices continued their downward trajectory, rendering 

even relatively small installations more affordable. Falling 

prices, efficient LED lamps, and battery improvements have 

combined to provide accessible, lightweight, reliable, and 

long-lived solar lanterns that can meet the basic needs of many 

people, usually at lower cost than conventional kerosene-based 

alternatives. 6 Solar pico-PV systems (SPS), which range up to 

10 watts and can be easily self-installed and used, are now 

commonly available in a broad range of capacities. They can be 

put to a variety of uses, such as powering off-grid medical clinics, 

as is done in several remote parts of sub-Saharan Africa. 7 

Slightly larger solar home systems (SHS)—solar PV systems 

generally ranging from 10 to 200 watts—are increasingly being 

installed in rural areas where small grids are infeasible. In 

Bangladesh, for example, more than 2.1 million systems had 

been deployed by March 2013. This development is changing 

the energy-access dynamic in Bangladesh and turning rural 

villages into thriving centres of commerce. 8 

Small-scale wind turbines, typically up to 50 kW, have experienced 

performance improvements due to the advanced 

wireless technologies and materials that have come into play. 

Small- and medium-scale wind turbines are becoming increasingly 

competitive and are easy to integrate into existing grids. 

In Egypt, Ethiopia, Kenya, Lesotho, Madagascar, and Morocco, 

plans are under way to add wind to existing mini-grid systems. 9 

(See Sidebar 8.) Even in areas with limited infrastructure, 

medium-scale wind systems in increasing numbers are being 

transported, installed, and maintained, with generation costs as 

low as USD 0.10/kWh in 2012. 10 

Micro-hydro power generation schemes as small as 1 kW 

are used extensively in remote and rural areas. Geothermal 

05 

Renewables 2013 Global Status Report 

81


Sidebar 8. Innovating Energy Systems: Mini-Grid Policy Toolkit 

Mini-grids are power solutions for isolated sites, such as islands 

and towns in remote mountainous or forested areas, where 

the grid cannot easily reach and where “stand-alone” power 

systems are not technically or economically viable. They are 

different from stand-alone solar PV or wind systems because 

they are larger in capacity (up to 1 MW), serve entire communities 

through distribution networks (instead of individual sites), 

and often incorporate a number of technologies (e.g., hybrid 

generator-wind-PV systems). They are expandable and can be 

managed by community groups or small businesses. When the 

national grid does reach an area, they can be connected to it. 

There are several types of mini-grids. For example: 

◾◾ 

Inverter-connected mini-grids incorporate a variety of 

technologies (solar PV, wind, diesel, battery banks) and 

range in size from 2 kW to over 300 kW. This is a rapidly 

developing field. 

◾◾ 

Hydro/pico-hydro mini-grids are mature technologies used 

by remote missions, tea factories, and small communities. 

◾◾ 

Gas-fired generator mini-grids powered by agricultural waste 

or biogas are maturing technologies, often used commercially 

by sugar and timber industries. 

◾◾ 

Diesel-powered mini-grids were, until recently, the most 

common option. Cost and environmental concerns, 

however, have forced project developers to reconsider diesel 

generation as a “first” solution. 

Attention to mini-grids has risen for a variety of reasons. 

Extending national power grids to remote communities is 

expensive, and electricity demand in rural areas may prove 

too low to cover such costs. While petroleum-based generator 

costs are increasing, mini-grid costs have fallen dramatically 

with price reductions in solar, wind, inverter, gasification, and 

metering technologies. Today, “intelligent” community minigrids 

can automatically measure power use, bill customers, and 

provide management data online to system operators. Further, 

the demand for efficient, low-carbon technologies is at an alltime 

high, and rural electrification programmes are increasingly 

demanding green solutions. 

For mini-grids to make sense, there usually must be potential 

for economic activity in the target community or some type of 

anchor load that can cover investment costs (these include 

telecom base stations, agricultural processing, and battery 

charging). There also must be a minimum population density 

and power demand from consumers; otherwise, stand-alone PV 

or generator systems tend to be better choices. 

Mini-grids have been in use as long as hydro and diesel power 

generation technologies have been available. Hydro-based 

community mini-grids are common in Asia; in Africa, they were 

more widespread before the 1960s, when the focus shifted 

to large power-grid projects. Diesel mini-grids remain a “first” 

choice for isolated community electrification all over Africa. 

Recently, countries like Rwanda and Uganda have adopted 

strong small-scale hydro programmes. Island or remotely 

located sugar and lumber plantations often run biomass-waste 

mini-grid systems for operations and employee housing. Since 

2005, use of solar PV/battery and inverter technology in remote 

communities has increased rapidly: for example, scores of solar 

mini-grids have been installed in West Africa by rural energy 

agencies. 

Still, important barriers to wider use remain. First, poor understanding 

of mini-grid technology and a lack of experience with 

business models often causes decision makers to select more 

“traditional” solutions rather than “risky” un-proven solutions. 

Second, both unrealistic grid extension plans and a general 

unwillingness to invest off-grid stifle more appropriate investments 

in mini-grids. Third, the large upfront costs associated 

with mini-grid solutions, combined with business-as-usual 

support for diesel fuel, reduce investment in new solutions. 

The “Mini-Grid Policy Toolkit” project i is increasing awareness 

of the potential offered by mini-grids, resolving common 

misperceptions, presenting lessons learned, and providing 

recommendations for senior policymakers and their advisors 

towards an increased adoption of renewable- and hybrid-based 

mini-grids into energy planning and policy. 

The “Innovating Energy Systems” sidebar is a regular feature 

of the Global Status Report that focuses on advances in energy 

systems related to renewable energy integration and system 

transformation. 

i The project is overseen by the Alliance for Rural Electrification (ARE), Energy Initiative Partnership Dialogue Facility (EUEI PDF), and REN21, and is being 

produced by African Solar Designs and MARGE. For more information please visit www.minigridpolicytoolkit.euei-pdf.org 


energy is becoming increasingly popular where resources 

are available. It is highly competitive for electricity generation 

in countries with readily accessible high-temperature steam 

resources; for heat production from low-temperature sources; 

and for cascading heat ii from higher temperature applications. 11 

Small-scale electricity installations are not yet competitive, but 

a few countries, including Ecuador and Kenya, have increased 

R&D funding in an effort to reduce costs. 12 

Solar thermal technologies are mature, reliable, accessible, and 

economically competitive, and they offer enormous potential 

for heating and cooling for residential and commercial needs 

as well as industrial processes. They are used widely for water 

heating, particularly in rural and urban China, and they offer 

significant potential for other developing countries. 13 

ii Cascading heat is a process by which heat surplus from a higher-temperature process is used to perform successive tasks requiring lower and lower 

temperatures. 

82

Solid biomass applications for drying and curing continue to 

increase in number, as do biogas plants, which are used widely 

for rural electrification and cooking. Biogas plants are based on 

simple technology and continue to increase in number where 

households and commercial farms have access to sufficient 

animal manure for fuel. 14 High upfront capital costs of larger 

plants, however, as well as operation and maintenance requirements 

and the lack of familiarity with biogas systems, have 

slowed their uptake in poor, rural areas. Even so, approximately 

48 million domestic biogas plants have been installed since the 

end of 2011 for rural electrification, with the vast majority of 

these in China (42.8 million) and India (4.4 million), and smaller 

numbers in Cambodia and Myanmar. 15 

Ethanol can also be used as a cooking fuel instead of traditional 

solid biomass and charcoal. In Mozambique, an ethanol plant 

with production capacity of almost 2 million litres per year 

opened in early 2012. The company buys surplus cassava 

feedstock from about 3,000 local farmers and sells the ethanol 

fuel and clean cooking stoves at prices that are competitive 

with the local retail price of charcoal. 16 

■■Policies and Regulatory Frameworks 

Policies that promote renewable energy and address barriers to 

their use have played a critical role in accelerating deployment 

and attracting investment to this sector, with countries applying 

a range of formal strategies aimed at promoting renewable 

solutions to the challenges of energy access. 17 These initiatives 

are integrated increasingly into broader rural development 

plans, with a focus on pro-poor policies and frameworks that 

are broad-based, attract new investment in energy access, and 

support local participation in developing and managing energy 

systems. 

In many countries, greater political commitment is providing 

impetus to more integrated policy foundations, driving more 

decisive action, and opening up substantial public resources 

in both the medium and long terms. Policymakers are also 

benefitting from decades of past experience, both good and 

bad, building programmes that are more sensitive to the social 

and economic realities of their respective settings. Top-down 

approaches, such as those adopted by rural electrification 

agencies in sub-Saharan Africa in the late 1990s, are making 

way for enabling policy frameworks developed through 

bottom-up (endogenous) processes. 

China, Brazil, India, and South Africa are in the lead, developing 

large-scale programmes that are making significant inroads into 

addressing the dual challenges of energy access and sustainability. 

Progress is also evident in Costa Rica and the Philippines, 

where rural electrification cooperatives have been adopted 

to oversee the overall planning and implementation of off-grid 

electrification programmes. Argentina, Bangladesh, Kenya, 

Mali, Mexico, and Sri Lanka are encouraging off-grid renewable 

energy programmes, often with a blend of public and private 

sector resources, while many countries continue to benefit from 

international assistance. For example, the EnDev programme 

(supported by Australia, Germany, the Netherlands, Norway, 

Switzerland, and the United Kingdom) has provided 9 million 

people with access to modern energy services in Benin, Bolivia, 

Burkina Faso, Burundi, Indonesia, Nepal, Nicaragua, and 

Peru. 18 

Formal targets remain a fundamental building block of these 

initiatives. Countries with electrification targets include 

Bangladesh, Botswana, Ethiopia, Malawi, the Marshall Islands, 

Nepal, Rwanda, South Africa, Tanzania, and Zambia. 19 (See 

Reference Table R17.) Several countries, including Brazil and 

China, established new energy-access targets in 2012, with 

specific resource allocations and monitoring systems being set 

up to achieve them. 

The Economic Community of West African States (ECOWAS) 

plans to provide electrification to up to 78 million households by 

2030, largely through mini-grids. 20 In October 2012, ECOWAS 

also adopted a regional renewable energy policy that aims to 

serve 25% of the rural population with decentralised renewable 

energy systems. 21 These initiatives aim to directly tackle the 

challenge of energy access in West Africa, where more than 

170 million people lack access to electricity. 22 

Many programmes focus on the rollout of specific technologies 

such as solar home systems. India’s Rural Electricity Policy 

envisions off-grid solutions based on stand-alone systems for 

villages/habitations where grid connectivity may not be feasible 

or cost effective, and on the adoption of isolated lighting 

technologies incorporating solar PV where neither stand-alone 

systems nor grid connectivity are viable. In Bangladesh, the 

Rural Electrification and Renewable Energy Development 

Project is currently installing some 1,000 solar home systems 

per day. This project is operated by an institutional partnership 

between the Bangladesh Infrastructure Development Company 

(IDCOL) and about 40 NGOs. 23 

Significant investment is and will be needed to maintain these 

and other programmes, and to achieve ambitious electrification 

targets. The United Nations General Assembly’s “Energy 

Access for All” objective of universal access to modern energy 

by 2030 will require an annual investment of an estimated USD 

36–41 billion. 24 

The contribution of renewable energy technologies to the 

development of productive activities can significantly improve 

financial viability and sustainability of these investments, 

and large-scale off-grid renewable energy programmes have 

succeeded in addressing the initial capital costs barrier 

through a variety of financing instruments. 25 Often, subsidies 

are applied to incentivise operators to adopt renewable energy 

technologies while developing electrification schemes in 

remote communities. This buy-down of initial capital costs has 

facilitated the pace of deployment of renewable energy systems 

05 


83


over the last decade. 

Approaches vary by region. In Bangladesh, financing incentives 

include long-term loans; grants covering up to one-third of the 

capital costs; low-interest loans; and grace periods of about 

five years. 26 In the cases of Mali, Senegal, and Uganda, rural 

electrification funds subsidised up to 80% of the upfront capital 

costs, allowing energy service companies to engage in rural 

electrification schemes using renewable energy technologies. 27 

In many areas, the application of locally sourced funding is 

being used as a tool to achieve greater long-term financial 

sustainability. Several countries, including Uganda and Malawi, 

established support policies in 2012 to facilitate the mobilisation 

of local indigenous funds to contribute to closing the funding 

gap. These policies aim to allocate funding and resources 

to create local capacities, and promote energy literacy in order 

to ensure effective involvement of local people in the energy 

planning and decision-making processes. 

The promotion of local funding is rooted in past programme 

experiences, where a lack of substantial and inherent local 

engagement left many programmes detached from the needs 

and characteristics of targeted communities. This falls against 

a backdrop of disappointing evidence about the contribution of 

small-scale, subsidised projects to the growth of energy access. 

■■Industry Trends and Business Models 

The provision of energy services to rural markets has evolved 

over the last two decades from the centralised, public sector-led 

approach to a range of different types of public-private 

partnerships and private ventures in which renewables now 

play a key role. With the increasing recognition that low-income 

customers can provide fast-growing markets for goods and 

services—as in the mobile phone industry—and with the 

emergence of new models for serving them, rural energy 

markets are increasingly being recognised as potential business 

opportunities. 28 

Rural electrification programmes funded exclusively by 

government and donor resources are still being adopted 

across the developing world, especially for grid extension in 

both vertically integrated and liberalised markets. But commercial 

and quasi-commercial business models are starting 

to become mainstream options for providing a wider range of 

energy services to off-grid markets. 29 Promisingly, innovative 

multi-stakeholder business models are emerging continuously 

to provide customised and financially sustainable services 

based on renewable energy across the spectrum of rural energy 

needs. 

Laos, Lesotho, and Nepal are implementing projects under 

an emerging model dubbed as the pro-poor public-private 

partnership (5P). The 5P model aims to improve access to 

energy services for rural populations; enhance the awareness 

of policymakers; build capacity at the national and local levels 

to develop policy options for integrating energy and rural 

development policies; and create an environment conducive to 

private sector and entrepreneurial investment for value creation 

that can be sustained and increased in the future. 30 

This variety of business models has been driven by the convergence 

of several trends. These include increased technology 

innovation and reduced prices (in both small-scale power 

generation equipment and devices); rising and more-volatile 

fossil and cooking fuel prices; growing awareness of the energy 

access challenge; and donor preference for cleaner, modern 

technologies. 31 At the same time, the rise of social entrepreneurship 

and “impact investment” is helping to shape the 

structure of innovative ventures in rural markets by integrating 

lessons from past experiences, including the importance of 

after-sale activities, availability of micro financing, and the 

creation of an enabling business environment. 32 

Over the past two decades, the so-called dealer and fee-forservice 

models have been the primary means for commercial 

dissemination of solar PV to serve household and small 

business electricity needs. Both models rely on concessions 

or exclusivity rights to serve a specific area or territory, and 

they often rely on targeted subsidies (e.g., full or partial capital 

cost subsidies). Over time, these schemes have evolved to 

include different types of public-private partnerships that 

have developed to meet the requirements of specific business 

environments. For example, Bolivia’s programme is based on 

medium-term service contracts with output-based aid i , and 

combines the dealer model with the traditional energy supply 

company concession scheme. It has an exclusivity term of only 

2–5 years and offers a broad menu of ownership options. 33 

Other models include leasing arrangements. Soluz is providing 

SHS services via direct lease or lease-to-own arrangements 

in Honduras and the Dominican Republic. 34 The most notable 

public-private partnership projects—for the volume of SHSs 

and solar kits delivered—are active in Argentina, Bangladesh, 

China, India, Indonesia, Mongolia, and Vietnam. 35 They are 

carried out jointly by national governments in partnership with 

major donor bodies like the World Bank, and focus on replacing 

lanterns and diesel generators with portable, sustainable, and 

affordable alternatives. 36 

In general, mini-utility ii business models require complex 

planning and management skills and are strongly dependent on 

load volume, availability of a reliable low-cost primary energy 

source, customer affordability, and robust regulatory frameworks. 

Notwithstanding, there are many examples of private 

firms running successful and innovative mini-utilities with 

renewable energy. 37 

The following sections provide an overview of rural energy 

developments and trends by region, updated from the GSR 

2012. Africa, particularly sub-Saharan Africa, has by far the 

lowest rates of access to modern energy services, while Asia 

i Output-based aid refers to performance-based subsidies to support the delivery of basic energy services; payment of public funds is tied to the actual delivery 

of these services. 

ii A mini-utility operates as an electricity company, but on a smaller scale, running mini-grid systems that can stand alone to serve a small community, and that 

may or may not be connected to the national grid. Mini-utilities are a common business model for rural electrification in many developing countries. They are 

either lighting-focused or provide total electrification, and they rely on a range of technologies, including diesel generators or hydropower as well as biomass, 

solar PV, and other renewables. Mini-utilities generally handle the full value chain from fuel sourcing to development and maintenance of distribution infrastructure, 

to billing and revenue collection; they are often regulated, much like their larger counterparts. 

84

presents significant gaps among countries, and the rate of 

energy access in Latin America is comparatively high. (See 

Reference Table R17.) 

A growing number of developing countries are transitioning 

to clean and sustainable cooking technologies and fuels, and 

away from the traditional practice of cooking over smoky open 

fires, driven by considerable health and climate co-benefits of 

using clean cookstoves and fuels. Yet in sub-Saharan Africa, 

more than 650 million people—about 76% of the region’s 

inhabitants—rely on traditional biomass for heating and cooking. 

38 The shares of population relying on traditional biomass for 

heating and cooking in Asia and Latin America are significantly 

lower by comparison. (See Reference Table R18.) 

■■Africa: Regional Status 

Despite efforts to promote electrification in sub-Saharan Africa, 

the region has the lowest electrification rate in the world. An 

estimated 70% of the region’s population does not have access 

to electricity. 39 

The ECOWAS member countries i plan rural energy advancement 

programmes collaboratively through their Centre for 

Renewable Energy and Energy Efficiency (ECREEE). This is one 

of the most active regions in Africa for the promotion of renewable 

energy and energy efficiency. ECREEE develops regional 

policy guidelines that are subsequently applied in ECOWAS 

member states, and has several strategic agreements with 

various international organisations (e.g., IRENA, UNIDO, FAO) to 

improve rural energy access and energy efficiency. In October 

2012, ECOWAS countries adopted a target for renewables to 

make up 10% of the region’s electricity mix by 2020 and 19% by 

2030. As part of this target, the region aims to serve 25% of the 

rural population with off-grid electricity systems by 2020. 40 

Across the ECOWAS region, renewable energy micro-grids, 

which are smaller than mini-grids in scale but able to service 

multiple homes or a small business enterprise, are increasingly 

viewed as options for providing electricity to people in isolated 

areas. During 2012, several regional and international organisations—including 

ECREEE, Lighting Africa, and IRENA—worked 

to promote micro-grid projects through dissemination 

workshops. 41 

Encouraged by developments in the ECOWAS region, countries 

and regions elsewhere on the continent plan to emulate its 

programmes. In 2012, the energy ministers of the Southern 

African Development Community (SADC) and the East 

African Community (EAC) formally agreed to establish similar 

regional renewable energy and energy efficiency promotion 

programmes. 42 

Rural electrification rates in North Africa remain the highest 

on the continent. With the exception of Sudan, all countries in 

the Maghreb region are implementing “last mile” electrification 

programmes. 43 With support from the Regional Center for 

Renewable Energy and Energy Efficiency (RCREEE), Sudan 

announced a national energy efficiency action plan in 2012 

that includes building seven large-scale wind, solar, and 

bio-power plants. In consultation with stakeholders, Sudan is 

currently designing and implementing an integrated renewable 

energy programme to advance domestic renewable energy 

deployment and is establishing the necessary regulatory and 

administrative frameworks to encourage public and private 

investment. 44 

Under the framework of its “Global Rural Electrification 

Program,” Morocco electrified 3,663 villages (51,559 households) 

with off-grid systems and mini-grids. Renewable energy, 

particularly solar PV, played a significant role in increasing 

energy access for households in very remote areas. 45 

Also in 2012, Ghana announced a pilot programme to replace 

kerosene lanterns with solar lanterns in remote off-grid 

communities in order to reduce the national kerosene subsidy. 

The annual budget for the kerosene subsidy was equivalent to 

the cost of providing over 400,000 solar lanterns to poor rural 

households; the subsidy has now been partially scaled back. 

Studies to electrify island and rural communities in the Greater 

Accra, Volta, and Brong Ahafo regions were completed in 2012, 

and a mini-grid electrification programme was initiated. 46 

Mali’s rural electrification programme has brought electricity 

to 740,000 people in the last six years, primarily (98%) 

with off-grid systems, thereby increasing the share of people 

with electricity access in rural areas from 1% to nearly 17%. 

While currently only 3% of the electricity is derived from 

renewables, the share of renewables in the mix is set to rise 

to 10% by 2015. 47 

Mozambique also has increased access through off-grid solar 

PV; the 0.5 MW of capacity added between 2010 and the end 

of 2012 brought the national total to 1.3 MW. An estimated 

USD 13 million was invested in solar power by the energy fund 

FUNAE in 2012 alone, contributing significantly to the increase 

in capacity. FUNAE planned to implement eight micro-hydro 

projects in 2013, and has earmarked USD 8 million to promote 

the development of renewable energy mini-grids. 48 

The programme “Increase Rural Energy Access in Rwanda 

05 

i Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. 


85


mixed. While several other countries—including Mongolia, 

Nepal, and Vietnam—have made measurable progress, 

Afghanistan, Bangladesh, Myanmar, and Pakistan continue to 

experience very low rates of rural electrification and still rely 

largely on traditional biomass for cooking and heating. 56 

through Public-Private Partnerships,” co-financed by the 

Rwandan national government and the European Union, 

involves electrifying rural areas primarily through hydro- and 

geothermal power. 49 The aim is to increase the share of 

Rwandans with electricity access from 6% in 2009 to 50% by 

2017. 50 Under this programme, Spanish-based Isofoton made 

the winning bid in 2010 for a project to supply, install, and 

maintain solar PV systems at 300 schools across the country. 51 

Tanzania saw construction of several grid-connected 

small-scale renewable power plants during 2012, as a consequence 

of the newly established Small Power Producer 

(SPP) Framework; at year’s end, the country had a pipeline 

of 60 projects totaling more than 130 MW, enough to bring 

power to more than 12 villages. 52 Also in 2012, Zimbabwe 

earmarked USD 1.5 million for solar lanterns to be distributed 

in rural schools across the country, while the country’s Rural 

Electrification Authority (REA) worked with local industries to 

develop solar lamps and create solar power jobs. 53 

In Uganda, the World Bank concluded the Uganda Accelerated 

Rural Electrification Plan (UAREP) and was awaiting government 

approval at year’s end. By the end of 2012, the government 

along with donor bodies had installed several mini-grids 

and thousands of isolated systems, including systems powered 

by hydropower, biomass, geothermal, solar, and wind. In addition, 

a collective fund that combines different types of financing 

was created in 2012 to accelerate grid extension in Uganda. 54 

■■Asia: Regional Status 

Both China and India have made major national investments in 

renewable energy in recent years, and they have seen significant 

progress in extending energy access through decentralised 

solutions. 55 Elsewhere in the region, progress has been 

Although China and India are neighbours and are the two 

largest emerging economies in the world, their energy access 

situations are strikingly different. With more than 1.3 billion 

people, China has made extraordinary investments to meet 

its growing energy needs. The result has been significant 

increases in access to grid-connected electricity, although an 

estimated 4 million Chinese in rural areas still lack access to 

modern energy sources. 57 India, in contrast, has a long way to 

go: more than 290 million people (25% of the population) lack 

access to electricity, and 66% of Indians continue to rely on 

traditional biomass as their primary source of energy despite 

the progress made in recent years. 58 

India announced in mid-2012 a goal to achieve universal access 

to electricity by 2017. Under the “Remote Village Electrification 

Programme,” renewable energy systems were provided to 905 

villages/hamlets over the 10 months leading to February 2012, 

far more than the targeted 500 villages/hamlets. 59 At the state 

level, Chhattisgarh initiated two schemes to replace the use of 

kerosene lamps with solar PV systems. 60 

In October 2012, China’s State Council officially released its 

second energy policy-related white paper since 1991, which 

reflected the increased importance of renewable energy in the 

context of rural development. China is investing in technical 

upgrades of the existing grid infrastructure in rural areas to 

achieve 100% access to electricity by 2015. To address energy 

supply shortfalls in rural areas and to advance the phaseout 

of burning traditional wood fuels, old hydropower stations are 

being refurbished and deployment of small-scale hydropower 

and solar water heaters is being promoted. 61 

Sri Lanka announced in 2012 that it had achieved its target 

of providing electricity for all people in the Eastern Province 

after the commissioning of six off-grid and nine grid-extension 

projects in Kantale, Padhaviya-Sripura, and Seruwila. The 

aim is to bring reliable electricity services to un-electrified or 

under-electrified remote areas of the country that are covered 

by the National Power Corporation’s (Napocor) Small Power 

Utilities Group. 62 

Although the focus in Asia is primarily on increasing access to 

electricity, there are a number of programmes and projects to 

address the heavy reliance on traditional biomass for cooking 

throughout the region, by providing access to clean cookstoves 

and alternative fuels, particularly biogas. In 2012, India 

launched its “National Cookstove Programme,” which aims to 

avoid 17% of the premature deaths and disabilities associated 

with traditional biomass emissions that would otherwise occur 

by 2020. 63 In Bangladesh, a World Bank-financed programme 

will support NGO efforts to provide rural households with 

clean cooking solutions through the dissemination of 1 million 

cookstoves and 20,000 biogas units. 64 

86

micro turbines were added to provide more than 57,000 households 

with electricity services, and more than 6,900 individual 

household solar panels were installed in isolated areas. 73 

While the region has made important advances in renewable 

rural electrification, developments in the heating and cooking 

sector are relatively limited. In Mexico, for example, about 

one-quarter of the total population still cooks on open fires 

or with old, inefficient cookstoves. 74 To address this situation 

in Mexico and other countries in the region, a number of 

programmes have been implemented at both the national and 

regional levels. 

■■Latin America: Regional Status 

Compared with other developing regions of the world, Latin 

America is far closer to achieving full energy access, particularly 

to electricity. Across Latin America, an estimated 6% of 

the population (29 million people) remains without access 

to electricity, and about 14% (65 million people) depends on 

traditional biomass for heating and cooking. 65 Lack of access is 

primarily a rural issue, with 28% of the rural population lacking 

electricity, whereas in urban areas the share is about 1%. 66 

Due to geographical limitations, the only viable solution for most 

of the region’s population living in isolated areas is the installation 

of off-grid renewable technologies. Because systems are 

generally installed by companies not based in these isolated 

areas, education and training programmes have been essential 

for developing local expertise and for training technicians to 

operate and maintain these systems. L’Institut Technique de 

la Côte-Sud (ITCS) in southern Haiti is one example of such a 

programme. 67 

Mexico has created several programmes to advance rural 

energy access through renewable energy and has made significant 

progress, achieving an overall electrification rate of nearly 

98%. Even so, some 130,000 small communities remained 

without access to electricity by the end of 2012. 68 In the rural 

areas of southern Mexico, some 3.5 million people still lack 

access because they are very far from the grid, communities 

are very small, and economic resources are limited. 69 

To help advance energy access, the Mexican State Power 

Company started operating its first off-grid solar PV plant in 

2012—the 65.5 kWp plant in the Sonoran town of Guaycora— 

which is the first of its kind in the country and is expected to 

provide electricity for more than 50 homes. 70 In addition, the 

Mexico Renewable Energy for Agriculture Project, financed by 

the World Bank and the Global Environment Facility, focuses 

on the deployment of renewable technologies for agricultural 

productive purposes. As of 2012, the project supported about 

600 undertakings. 71 

Electricity coverage in Peru’s rural areas increased from 30% 

in 2007 to 55% by late 2010. In early 2012, the government 

further extended the grid to reach a total of 92,000 households, 

with greater inclusion of renewable technologies to provide 

electricity to micro and small rural enterprises. 72 In Nicaragua, 

between 2007 and 2011, five new mini hydro plants and 20 

Mexico and Peru have ongoing large-scale programmes to 

disseminate improved cookstoves, with the aim of reaching 1 

million units each, and Bolivia also is promoting their use. 75 A 

group of Central American countries i with common policies has 

also committed to disseminating 1 million improved cookstoves 

in each country by 2020; strategies include social marketing, 

micro-financing, awareness-raising campaigns, and real-time 

monitoring of stove use. 76 Central American and Caribbean 

countries—including Guatemala, Honduras, and Nicaragua— 

are also relying increasingly on carbon markets to finance 

cookstove projects. 77 

The Path Forward 

The need for rural energy in developing countries is, above all, a 

social and economic development matter for billions of people 

around the world. Renewable energy technologies, combined 

with business models adapted to specific countries or regions, 

have proven to be both reliable and affordable means for 

achieving access to modern energy services. And they are 

only growing more so as technological advances and rapidly 

falling prices (particularly for solar PV and wind power) enable 

renewables to spread to new markets. 78 

In addition to a focus on technologies and systems, most 

developing countries have started to identify and implement 

programmes and policies to improve the ongoing operational 

structures that govern rural energy markets. Such developments 

are increasing the attractiveness of rural energy markets 

for potential investors and leading to poverty alleviation and 

economic development. 

Renewable energy has the potential to play a crucial role in 

achieving the target of energy access for all by 2030, while also 

creating millions of local jobs. 79 These targets can be achieved 

if institutional, financial, legal, and regulatory mechanisms are 

established and strengthened to support renewable energy 

deployment, improve access to financing, develop the necessary 

infrastructure, build awareness about renewable energy 

technologies and their potential, and train workers. 80 

05 

i These countries include Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. 


87

06 

A reservoir serving a hydropower 

facility near the town of Mingachevir 

in northwestern Azerbaijan. 

Flexible plants such as hydro and 

bio-power facilities can respond 

rapidly to system fluctuations, 

supporting increasingly higher shares 

of variable solar and wind power. 

© NASA

06 FEATURE: 

SYSTEM TRANSFORMATION 

By Rainer Hinrichs-Rahlwes (German Renewable Energies Federation – BEE; European Renewable Energy Council – EREC) 

Renewable energy is growing rapidly and is likely to become 

the backbone of a secure and sustainable energy supply in an 

increasing number of developed and developing countries. 

Variable renewables such as wind and solar are growing particularly 

quickly in the electricity sector. Hydropower, geothermal, 

and bioenergy are being integrated into existing energy 

systems and markets in a growing number of countries, as fossil 

fuel and nuclear capacity is replaced with renewable-based 

technologies, and as supply chains are adapted. By contrast, 

integrating large shares of variable wind and solar requires that 

the energy mix and infrastructure become increasingly flexible 

and, where feasible, interconnected. 1 A number of countries 

are aiming beyond mere integration of renewable energy by 

enacting policies and measures to transform their energy 

systems to accommodate rising shares of variable renewables. 

For countries and regions planning to achieve very high shares i 

of wind and solar energy, system transformation is the most 

efficient and least costly way to do so. “System transformation” 

is defined as the process of adapting the energy system by 

replacing traditional baseload power from coal-fired and 

nuclear power plants with a flexibility-driven system that 

enables significant increases in shares of variable renewables. 

It entails shifting from a system that is relatively rigid and 

centralised to one that is more nimble and decentralised. 

Producers, consumers, grid operators, and other actors will 

play greater roles in optimising supply and demand, in part 

through the use of information technologies (sometimes called 

“smart grids”), and also through increased interconnection of 

all energy sectors—power, heating and cooling, and transport. 

The earliest and biggest challenges have to be met within the 

electricity sector, where relatively inflexible, conventional power 

plants and grid systems must, over time, be integrated with 

intelligent, flexibility-driven systems to support rising shares of 

a mix of variable and dispatchable renewable energy. Excess 

electricity can be used increasingly for transportation, heating, 

and cooling. Therefore, although transformation will require a 

change in the energy system as a whole, transformation of the 

electricity system is both feasible and most urgent. 

■■Shifting Paradigms: From Integrating 

Renewables to System Transformation 

For many years, it was believed that renewable energy 

technologies (other than large hydro) could only supplement the 

established electricity system, and that there was an inherent 

limit on the share of variable renewable sources that it could 

accommodate. ii Experience in Denmark, Germany, Spain, and 

elsewhere, however, has demonstrated that the implementation 

of suitable policies can enable the successful integration of 

higher shares of variable renewables than was thought possible 

only a few years ago, while also providing unforeseen benefits. 2 

Most of the alleged constraints to achieving higher shares of 

renewables either have resulted from a lack of political will to 

enact the required enabling legislation and actions, or they 

have been disproven as technical solutions to overcome the 

various challenges have emerged. Hence, variable renewables 

are becoming a major part (meaning around 15–20% or more) 

of the electricity supply in an increasing number of countries. 3 

It is now evident that a mix of variable and dispatchable 

renewables can provide a stable and reliable electricity supply. 4 

As installed capacities of renewables increase, a portfolio of different 

renewable technologies can often cover the major part of 

the power demand and, where inter-connected to other grids, 

can provide a surplus to export. They can provide electricity 

around the clock and throughout the year at reasonable costs, 

if the grid system and the regulatory framework are flexible and 

operated smartly. Further, it has been shown that renewables 

can reduce electricity prices considerably and thus alleviate 

energy costs for consumers. 5 iii 

Rising shares of variable renewable energy sources have 

triggered discussions about potential risks for system stability, 

the need for back-up capacities, and limitations of existing 

market designs that may no longer be able to provide adequate 

signals for needed future investment in power plants and infrastructure. 

6 These discussions began in countries and regions 

where wind power shares of the total electricity mix exceeded 

15% (e.g., Denmark, northern Germany, northern Spain, 

South Australia). The debate is expanding to other regions 

and technologies with, for example, high shares of solar PV 

emerging in Spain, Italy, and increasingly throughout Germany. 

Although the present debate focuses on these OECD countries, 

it will soon become relevant for other countries (including 

major emerging economies) as their shares of wind and solar 

electricity generation increase. 

06 

i There is no specific percentage that applies. In a very inflexible system, the need for transformation may start at a level of 10%, whereas in other, more 

flexible, systems—including those with high existing shares of large hydropower—it may start well beyond 20 or 30%. 

ii This apprehension and doubt was less evident and less widely accepted in countries with high shares of hydropower, a resource that is quickly 

dispatchable and can serve as balancing power. 

iii This is a consequence of the merit order effect. Due to very low marginal costs of wind and solar power generation, all other power plants are pushed 

out of the merit order so that their full-load hours and resulting capacity factor decrease constantly. In addition, prices per kWh tend to be very low in 

times of high wind and solar yields. 


More interaction among the sectors could help improve overall 

system efficiency, could increase system stability and security 

of supply, and would be more cost effective. Thus, it could 

conceivably facilitate the transition towards an energy supply 

based on very high shares of renewable energy. In conventional 

energy systems, the interaction among the electricity, 

heating, cooling, and transport sectors is minimal, although in 

many markets electricity demand is closely linked to heating 

and cooling demand for buildings. Liquid and solid fuels and 

electricity are sourced, traded, and used through different 

channels. Infrastructure and markets are technically different, 

and are operated and maintained by different actors and under 

different technical and economic regulations. To address this 

situation, some countries have begun to integrate sectors using 

a variety of strategies discussed below. 

Some industrialised countries (for example, Denmark and 

Germany) have decided to base their electricity supply and/or 

final energy supply predominantly on variable renewables. 7 

They are moving their electricity supply away from systems 

based on traditional (relatively inflexible) base load that is 

complemented by marginal cost-driven balancing power to 

more flexible systems that are driven by and designed for 

variable renewables. 

■■The Technology Challenge 

Electricity generation must closely balance demand at all 

times. Most of the electricity in conventional power systems 

is produced by baseload power plants, which are available 

24 hours a day, all year round. Additional generation above 

base load, anticipated to meet increased demand as the daily 

profile changes, is sourced from dispatchable intermediate 

cycling plants (those between peaking and baseload plants). 

Peak load is met by flexible plants that can vary their output 

within minutes or even seconds, such as gas turbines running 

on natural gas or biogas and hydropower, particularly dammed 

or pumped storage hydro systems. As the share of variable 

renewables increases in the resource mix, a system will need 

more plants that are optimised for providing rapid responses to 

system fluctuations. 

For reasons of grid stability, particularly for frequency control, 

only limited variations in electricity supply (not following 

demand) can be tolerated. Excess power production must 

be limited by reducing electricity generation, disconnecting 

capacity from the grid, or shifting demand loads. 

Most existing grids were designed, built, and equipped to 

deliver power from large-scale conventional baseload power 

plants using intermediate cycling plants and additional peakpower 

plants when needed. High-voltage transmission lines, 

combined with lower-voltage distribution networks, deliver 

electricity from large centralised power plants to dispersed consumers. 

The power grid in its present form was not designed 

to take power fed in from numerous decentralised generators 

of varying sizes and grid levels. Thus, as more distributed generation 

comes in from small-scale renewable energy systems, 

existing grids often need to be upgraded to accommodate the 

shift in transmission loads and to help guarantee stable and 

reliable power flow wherever and whenever needed. 

A variety of solutions are already in use or are being evaluated, 

particularly in Europe, for facilitating significant increases 

in shares of renewable energy (particularly variable) while 

reducing shares of traditional baseload power. These solutions 

include: 

◾◾ 

Using a diverse portfolio of both variable and dispatchable 

renewable power plants (e.g., pumped storage hydro, 

biogas) that are geographically dispersed. Many individual 

renewable power plants can be combined into a virtual 

power plant that consists of various distributed generation 

facilities of different sizes and using different sources, and 

that are operated collectively by a central control entity and 

thus provide power to meet continually changing demand; 

◾◾ 

Ramping down flexible plants in periods of excess 

generation; 

◾◾ 

Increasing interconnection capacity at all voltage levels 

across regions and between countries. Grid systems are 

becoming interconnected, often across borders, and 

balancing areas are being extended; 

◾◾ 

Advancing the quality of forecasting of solar and wind 

resources to improve accuracy of resource predictability; 

◾◾ 

Shifting demand through demand-side management (DSM); 

◾◾ 

Shifting demand by directing excess electricity generation to 

other sectors—such as charging electric vehicles, heating 

water, or producing hydrogen; 

◾◾ 

Using price signals to shift demand to times when high wind 

and solar availability occurs; 

◾◾ 

Locating distributed electricity generation closer to the point 

of consumption, thereby reducing transmission losses and 

the need for transmission capacity; 

◾◾ 

Using intelligent grids and smart software that can improve 

grid security by improving real-time information flow 

between the system operator and power plants that are 

technically equipped to deliver flexible system services; 

◾◾ 

Using electric vehicles as decentralised flexible storage 

systems with remote charging and discharging capability; 

◾◾ 

Integrating storage capacity into the system or with specific 

plants—for example, molten salt thermal storage with CSP 

plants. Storage technologies, from batteries to pumped 

hydro, are advancing and offer the capacity to store energy 

for periods of a few minutes to several months. This can 

meet a range of needs, from short-term use in electric 

vehicles to seasonal use for balancing weeks of low wind or 

no sun. (See Sidebar 3, GSR 2012.) 

All of these technologies exist, but refinement and deployment 

need to be facilitated through clear political decisions and 

the development of enabling frameworks. Several countries 

have begun to implement these options—including Denmark, 

Germany, Spain, and Japan—using smart energy systems and 

increasing the flexibility of demand and supply by developing 

smart grid systems and adequate centralised and decentralised 

storage solutions. 

90

■■The Economic Challenge 

Conventional electricity markets are driven mainly by generation 

costs per unit of energy. Levelised costs of energy and the 

resulting merit order are the main elements of price building on 

the different market levels (futures, day ahead, intra-day, etc.). 

For thermal power plants, capital costs make up a relatively 

small share of generation costs, whereas (and to a lesser extent 

also for nuclear plants) fuel costs are a major portion of the 

total. Therefore, volatile fuel prices have an important impact 

on the economic viability of a power plant. In contrast, with the 

exception of bio-power plants, renewable power has zero fuel 

costs and the major share of the cost is capital invested up front 

for the technology, project construction, and grid connection. 

Consequently, a fundamental difference between most renewable 

energy generation and fossil and nuclear power is the cost 

ratio between capital and operating costs. The marginal costs 

of most renewables (including hydro, geothermal, solar, and 

wind power) are low and often prevail over conventional power 

generation on spot markets, thereby reducing the economic 

viability of marginal cost based generation. 

The result is ambiguous. Where high capacities of wind and 

solar are installed, they can significantly reduce electricity 

prices, with resulting benefits for residential and industrial 

consumers; on the other hand, this effect makes it increasingly 

difficult to recover costs and thus achieve a reasonable (if any) 

return on investment. 9 In combination with priority or guaranteed 

grid access for renewable energy, existing conventional 

power plants (in particular those providing peaking power) are 

more often pushed out of the merit order and thus operated 

with decreasing capacity factors and, therefore, reduced 

profitability. 10 

As with technology-related challenges, solutions are being 

developed to create sufficient signals for investment in grids 

and in strategic capacity reserves as well as in new and flexible 

power plants. Capacity markets i , which offer remuneration 

for available capacity instead of for the electricity generated, 

as well as other flexibility mechanisms, are tools to secure 

(new) capacity to meet demand at any time. However, such 

payments risk locking-in conventional thermal capacity, which 

may be needed for only a few years until the transition towards 

renewables is further advanced. Mechanisms that are not well 

designed could result in subsidising environmentally harmful 

power plants that might otherwise be taken off line as stranded 

assets. 

Discussion is ongoing regarding how to best design flexibility-driven 

capacity mechanisms—including, but not limited to, 

capacity markets. Several other options to advance and enable 

system transformation are evolving, however. These include the 

following: 

◾◾ 

All technical and economic aspects of the energy system 

must be developed around the need to support variable 

renewables; 11 

◾◾ 

Incentives and regulations must support the development 

and deployment of improved flexibility options (e.g., grid 

infrastructure, storage capacity, DSM, and highly flexible 

power plants), rather than supporting capacity alone; 12 

◾◾ 

Regulatory frameworks need to enable the participation 

of both dispatchable and variable renewables in balancing 

markets in order to further reduce system costs; 

◾◾ 

Reduction in gate closure times ii (including in intra-day 

trading) can facilitate the inclusion of variable renewables 

in balancing markets. Grid systems that are “smart” and 

diverse, and that cover large balancing areas, can be used in 

combination with properly functioning balancing markets. 

■■System Transformation Has Begun 

In developing economies, where power systems are growing 

rapidly and still taking shape, systems can be designed to be 

highly flexible in order to accommodate variable renewables. 

In most OECD countries, however, the optimal way to achieve a 

system based on a high penetration of variable renewables is to 

transform the existing system towards one that is highly flexible. 

Various elements of transformation are already in place in 

existing supply systems and energy mixes. Some of these 

elements are mature solutions that help with integration and, on 

a larger scale, can be elements of transformation as well; others 

are being introduced as new options. For example: 

◾◾ 

Solar hot water systems with and without electricity back-up 

are combined with conventional decentralised and district 

heating systems; 

◾◾ 

Bio-methane/biogas is injected into natural gas grids, where 

it is used for electricity, heating and cooling, and for fuelling 

vehicles; 

◾◾ 

Abundant electricity from renewable sources is used for 

heating and for producing hydrogen, or for other applications 

that enable energy to be stored for later use; 

◾◾ 

Natural gas and biogas and solid biomass are interacting in 

combined heat and power (CHP) systems; 

◾◾ 

Electricity used in public vehicle fleets and private cars 

with the batteries serving as storage and balance for the 

electricity system is another option that is being explored. 

Denmark, which pioneered the use of wind power and CHP 

biomass, achieved a renewable share that exceeded 24% of 

total final energy use in 2012. 13 In 2011, more than 40% of 

Denmark’s electricity came from renewables; by the end of 

2012, wind alone contributed more than 30% of the country’s 

electricity consumption. 14 Biomass-CHP is a key domestic element 

of balancing power and system stability, while variability is 

balanced further by interconnecting the Danish grid with grids 

of other Scandinavian countries that source electricity either 

mainly from hydropower (Norway) or from hydropower and 

biomass CHP (Sweden). 

Energienet.dk (ENDK), the state-owned grid operator for the 

gas grid and the electricity system, is working towards targets of 

50% wind power by 2020 and a fully renewables-based energy 

system by 2050. 15 ENDK is developing and implementing new 

06 

i Capacity markets have been used without reference to renewables deployment for a long time in the United States and elsewhere around the world. 

ii Gate closure time describes how long in advance of actual delivery of energy the bids have to be placed. The shorter these times and the closer to real 

time, the easier it is for variable renewables—particularly in larger balancing areas—to participate in these markets, since weather forecasts are more 

accurate. 


06 FEATURE: SYSTEM TRANSFORMATION 

market regulations, including demand-side incentives, to cope 

with increasing shares of wind power and the resulting cost 

effects. It is enhancing and enforcing the power (and gas) grids, 

setting up new transmission lines (some of which are being 

installed underground, particularly at lower voltage levels) to 

connect different parts of Denmark, connecting new offshore 

wind farms, and enhancing connections with neighbouring 

countries including Germany, the Netherlands, and particularly 

Norway and its hydropower resources. 16 

The Iberian Peninsula lacks sufficient interconnection capacity 

to the north (i.e., France) for the grids of European neighbours 

to help balance variable renewable energy. Only recently has 

an agreement been reached to double the interconnection 

capacity between Spain and France. Despite this shortcoming, 

Spain i and Portugal ii are among the countries with the highest 

wind power shares in Europe. 17 Both countries are dealing successfully 

with the resulting challenges. In Portugal, hydropower, 

and some bio-power (as well as some waste-to-energy plants) 

provide the major share of the country’s flexible capacity. In 

Spain, the main tool for dealing successfully with high shares 

of wind and solar power is a special control centre (CECRE), 

established in 2006. CECRE’s sole purpose is to monitor and 

safely integrate the highest possible amount of electricity from 

renewables. 18 

Germany is in the process of “Energiewende” (energy transition 

or turnaround), a transformation that started long before the 

2011 decision to phase out nuclear power by 2022. The first 

feed-in law was enacted in 1991, and the uptake of renewable 

energy was significantly accelerated when the Renewable 

Energy Sources Act (EEG) entered into force in 2000. By 

granting priority grid access and priority dispatch to renewable 

energy, the EEG facilitated a process of transforming the power 

grid to accommodate increasing shares of renewable energy. 

The obligation for wind turbines (and recently also for solar 

PV) to provide system services (e.g., remote control by the grid 

operator and scalable output) was enacted and implemented 

in the 2004 and 2009 amendments to the law. 19 Renewables’ 

share of total consumption in the power sector increased from 

6.8% in 2000 to 22.9% in 2012, with wind and solar contributing 

more than half of this share. 20 

For 2020, Germany’s targets are to meet at least 35% of 

national electricity demand (80% by 2050) with renewables, to 

provide more than 18% of the overall total final energy (more 

than 60% in 2050) with renewables, and to reduce greenhouse 

gas emissions by 40% by 2020 (80–95% by 2050). The 

process is labelled and planned as system transformation, to 

be implemented in a cost-efficient way while maintaining a high 

level of supply security. 21 Smart grids, grid extension, demand 

response, strategic reserves, and/or capacity mechanisms 

for balancing power are being discussed. An ordinance that 

entered into force at the end of 2012 obliges operators of 

strategically important power plants to keep them available 

as reserve capacities for the power system. Discussion about 

incentives for flexible capacities and/or capacity payments is 

also ongoing. 22 

China and India have the highest installed capacities of 

variable renewables of any developing countries and have both 

adopted ambitious targets to further increase the capacity and 

related shares of renewable energy consumption. (See Policy 

Landscape section.) China, India, and other countries with 

rapidly increasing capacities and resulting shares of variable 

renewables already face the challenge of integrating them into 

existing energy systems, which are often weak and inflexible. 

However, they have the opportunity to design infrastructure and 

markets alongside their developing wind and solar capacity; to 

integrate the power grid with dispatchable energy sources and 

CHP; and to integrate electricity with other sectors such as solar 

heating, electric vehicles, and other innovative products. 

■■Outlook 

The process of developing, enacting, and implementing 

electricity systems with very high shares of renewables, 

particularly variable renewables, is ongoing. Several scenarios 

underline the possibility and viability of having an energy 

supply based predominantly on renewable energy. 23 They have 

been developed by high-level institutions, such as the IEA and 

the European Commission, and they frequently inform policy 

decisions. In December 2011, the European Commission 

published an “Energy Roadmap 2050” showing that all 

“decarbonisation scenarios” (those in compliance with the 

European Union’s greenhouse gas reduction targets of minus 

80–95% below 1990 levels by 2050) will be based on very high 

shares of renewables—i.e., as much as 54–75% of final energy 

consumption, and 59–83% of electricity supply, with variable 

renewables playing a major role. 

Of the 164 scenarios examined by the Intergovernmental Panel 

on Climate Change in the Special Report on Renewable Energy 

Sources and Climate Change Mitigation, the most ambitious scenario 

with regard to the growth of renewable energy, improvements 

in energy efficiency, and the resulting greenhouse gas 

mitigation emphasised that implementation must be based on 

clear and unambiguous policy decisions, including the removal 

of fossil fuel and nuclear power subsidies (in all sectors, 

including electricity, heating and cooling, and transport fuels), 

in order to create a level playing field for renewable energy 

and to avoid further costly lock-in of fossil- and nuclear-based 

energy production. 24 

System transformation will be the most efficient and least costly 

means for achieving high renewable electricity shares with 

variable resources. The technologies needed to achieve transformation 

of the electricity system, from one based on thermal 

baseload plants fired with fossil fuels to one with high shares of 

variable renewables, are well understood. The requirements for 

designing and operating a supply system to accommodate high 

shares of variable renewables are also better understood, and 

the potential economic costs and benefits have been demonstrated. 

What is needed now is the political will to implement 

them. 

i In Spain, 32% of electricity was derived from renewables in 2012 (down from 33% in 2011), with 57% of that from wind, 13% from solar, and the rest 

from dispatchable renewable sources including hydro and bio-power, per Red Eléctrica Corporación, Corporate Responsibility Report 2012 (Madrid: 

2013), p. 60. 

ii In Portugal, 42.7% of electricity was derived from renewables in 2012, with about half (50.5%) from wind, 1.8% from solar, and the rest mainly from 

hydropower and biomass, per Direcção Geral de Energia e Geologia (DGEG), Renováveis, Estatísticas Rápidas 2012 (Lisbon: January 2013). 

92

REFERENCE TABLES 

TABLE R1. GLOBAL RENEWABLE ENERGY CAPACITY AND BIOFUEL PRODUCTION, 2012 

Added During 2012 

Existing at End-2012 

Power Generation 

(GW) 

Bio-power +9 83 

Geothermal power +0.3 11.7 

Hydropower +30 990 

Ocean power ~0 0.5 

Solar PV +29 100 

Concentrating solar thermal power (CSP) +1 2.5 

Wind power +45 283 

Hot Water/Heating (GW th ) 

Modern bio-heat +3 293 

Geothermal heating +8 66 

Solar collectors for water heating 1 +32 255 

Transport Fuels 

(billion litres/year) 

Biodiesel production +0.1 22.5 

Ethanol production –1.1 83.1 

1 Solar collector capacity is for glazed water systems only. Additions are net; gross additions were estimated at 53 GW th . 

Note: Numbers are rounded to nearest GW/GW th 

, except for relatively low numbers and biofuels, which are rounded to nearest decimal point; where totals do not 

add up, the difference is due to rounding. Rounding is to account for uncertainties and inconsistencies in available data. For more precise data, see Reference 

Tables R4–R8, Market and Industry Trends by Technology section, and related endnotes. 



93

Reference Tables 

TABLE R2. RENEWABLE ELECTRIC POWER GLOBAL CAPACITY, TOP REGIONS AND COUNTRIES, 2012 

Technology 

World 

Total 

EU-27 BRICS China United 

States 

Germany Spain Italy India 

(GW) 

Bio-power 83 31 24 8 15 7.6 1 3.8 4 

Geothermal power 11.7 0.9 0.1 ~0 3.4 ~0 0 0.9 0 

Ocean (tidal) power 0.5 0.2 ~0 ~0 ~0 0 ~0 0 0 

Solar PV 100 69 8.2 7.0 7.2 32 5.1 16.4 1.2 


thermal power (CSP) 

2.5 2 ~0 ~0 0.5 ~0 2 ~0 ~0 

Wind power 283 106 96 75 60 31 23 8.1 18.4 

Total renewable 

power capacity (not 

including hydropower) 

480 210 128 90 86 71 31 29 24 

Per capita capacity 

(W/inhabitant, not 

including hydropower) 

70 420 40 70 280 870 670 480 20 

Hydropower 990 119 402 229 78 4.4 17 18 43 

Total renewable 

power capacity 

(including hydropower) 

1,470 330 530 319 164 76 48 47 67 

Note: Global total reflects additional countries not shown. Table shows the top six countries by total renewable power capacity not including hydropower; if 

hydro were included, countries and rankings would differ somewhat. To account for uncertainties and inconsistencies in available data, numbers are rounded to 

the nearest 1 GW, with the exception of the following: totals below 20 GW are rounded to the nearest decimal point; and per capita numbers are rounded to the 

nearest 10 W. Where totals do not add up, the difference is due to rounding. Small amounts, on the order of a few MW (including pilot projects), are designated 

by “~0.” For more precise figures, see Global Market and Industry Overview and relevant sections in Global Market and Industry Trends by Technology and 

related endnotes. Figures should not be compared with prior versions of this table to obtain year-by-year increases as some adjustments are due to improved or 

adjusted data rather than to actual capacity changes. Hydropower totals, and therefore the total world renewable capacity (and totals for some countries), do 

not include pure pumped storage capacity. For more information on hydropower and pumped storage, see Methodological Notes on page 126. 


94

Table R3. WOOD PELLET GLOBAL TRADE, 2012 

Exporter Importer Volume 

(kilotonnes) 

United States k EU-27 1,956 

Canada k EU-27 1,221 

Russia k EU-27 676 

Ukraine k EU-27 227 

Croatia k EU-27 132 

Belarus k EU-27 111 

Bosnia and Herzegovina k EU-27 61 

South Africa k EU-27 88 

Serbia k EU-27 22 

Australia k EU-27 19 

Norway k EU-27 45 

New Zealand k EU-27 14 

Other k EU-27 49 

Canada k Japan 50 

Canada k South Korea 50 

Canada k United States 30 

Note: Trade data used in this analysis are complex and are not always standardised among countries. 



95


TABLE R4. BIOFUELS GLOBAL PRODUCTION, TOP 15 COUNTRIES PLUS EU-27, 2012 

Country Fuel Ethanol Biodiesel Total Comparison with Volumes 

Produced in 2011 

(billion litres) 

United States 50.4 3.6 54.0 –2.4 

Brazil 21.6 2.7 24.3 +0.6 

Germany 0.8 2.7 3.5 –0.5 

Argentina 0.2 2.8 3.0 +0.1 

France 1.0 1.9 2.9 +0.2 

China 2.1 0.2 2.3 No change 

Canada 1.8 0.1 1.9 +0.2 

Thailand 0.7 0.9 1.6 +0.5 

Indonesia 0.1 1.5 1.6 +0.2 

Spain 0.4 0.5 0.9 –0.3 

Belgium 0.4 0.4 0.8 No change 

Netherlands 0.2 0.5 0.7 –0.1 

Colombia 0.4 0.3 0.7 No change 

Austria 0.2 0.4 0.6 No change 

India 0.5 >0.0 0.5 +0.1 

World Total 83.1 22.5 105.6 – 1.0 

EU-27 4.2 9.1 13.3 –0.7 

Note: All figures are rounded to nearest 0.1 billion litres; comparison column notes “no change” if difference is less than 0.05 billion litres. Ethanol numbers are 

for fuel ethanol only. Table ranking is by total volumes of biofuel produced in 2012 (from preliminary data), and not by energy content. Where totals do not add 

up, the difference is due to rounding. 


96

TABLE R5. SOLAR PV GLOBAL CAPACITY AND ADDITIONS, TOP 10 COUNTRIES, 2012 

Country Total End-2011 Added 2012 Total End-2012 

(GW) 

Germany 24.8 7.6 32.4 

Italy 12.8 3.6 16.4 

United States 3.9 3.3 7.2 

China 3.5 3.5 7.0 

Japan 4.9 1.7 6.6 

Spain 4.9 0.2 5.1 

France 1 2.9 1.1 4.0 

Belgium 2.1 0.6 2.7 

Australia 1.4 1.0 2.4 

Czech Republic 2.0 0.1 2.1 

Other Europe 3.3 4.1 7.4 

Other World 4.1 2.6 6.7 

World Total 71 29 100 

1 For France, previously installed projects were connected to the grid in 2012, along with a limited contribution from new installations, per European 

Photovoltaics Industry Association, Market Report 2012 (Brussels: February 2013). 

Note: Countries are ordered according to total operating capacity. Capacities are rounded to the nearest 0.1 GW; world totals are rounded to nearest 1 GW. 

Rounding is to account for uncertainties and inconsistencies in available data; where totals do not add up, the difference is due to rounding. Data reflect 

a variety of sources, some of which differ quite significantly, reflecting variations in accounting or methodology. For more detailed information and statistics, 

see Solar Photovoltaics section in Market and Industry Trends by Technology and related endnotes. 



97


TABLE R6. CONCENTRATING SOLAR THERMAL POWER (CSP) GLOBAL CAPACITY AND 

ADDITIONS, 2012 


(MW) 

Spain 999 951 1,950 

United States 507 0 507 

Algeria 25 0 25 

Egypt 20 0 20 

Morocco 20 0 20 

Australia 3 9 12 

Chile 0 10 10 

Thailand 5 0 5 

World Total 1,580 970 2,550 

Note: Table includes countries with operating commercial CSP capacity at end-2012. Several additional countries had small pilot plants in operation by year’s 

end, including China (about 2.5 MW), France (at least 0.75 MW), Germany (1.5 MW), India (as much as 5.5 MW), Israel (6 MW), Italy (5 MW), South Korea (0.2 

MW), and Thailand (5 MW). GSR 2012 also included 17 MW in Iran; this was removed because capacity is reportedly not in operation. Data are rounded to 

nearest MW. Rounding is to account for uncertainties and inconsistencies in available data; where totals do not add up, the difference is due to rounding. 


98

TABLE R7. SOLAR WATER HEATING GLOBAL CAPACITY AND aDDITIONS, 

TOP 12 COUNTRIES, 2011 

Country Added 2011 Total End-2011 

(GW th 

) 

China 40 152 

Germany 0.9 10.3 

Turkey 1.3 10.2 

Brazil 0.4 3.7 

India 0.7 3.3 

Japan 0.1 3.3 

Israel 0.3 3.0 

Austria 0.2 2.9 

Greece 0.2 2.9 

Italy 0.3 2.1 

Australia 0.3 1.9 

Spain 0.2 1.8 

Rest of World 4 25 

World Total 49 223 

Note: Countries are ordered according to total installed capacity. Data are for glazed water collectors only (excluding unglazed collectors for swimming pool 

heating). World additions are gross capacity added; total numbers include allowances for retirements. Data for China, rest of world, and world total are rounded 

to nearest 1 GW th 

; other data are rounded to the nearest 0.1 GW th 

. Rounding is to account for uncertainties and inconsistencies in available data; where totals 

do not add up, the difference is due to rounding. By accepted convention, 1 million square metres = 0.7 GW th 

. The year 2011 is the most recent one for which 

firm global data and most country statistics are available. It is estimated, however, that there were 282 GW th 

of solar thermal capacity of all types in operation by 

the end of 2012, and 255 GW th 

of glazed water collectors in operation worldwide. For details and source information, see Solar Heating and Cooling section of 

Market and Industry Trends by Technology. 



99


TABLE R8. WIND POWER GLOBAL CAPACITY AND ADDITIONS, TOP 10 COUNTRIES, 2012 


(GW) 

China 1 45.1/62.4 15.8/13 60.8/75.3 

United States 46.9 13.1 60.0 

Germany 29.1 2.4 31.3 

Spain 21.7 1.1 22.8 

India 16.1 2.3 18.4 

United Kingdom 6.6 1.9 8.4 

Italy 6.9 1.3 8.1 

France 6.8 0.8 7.6 

Canada 5.3 0.9 6.2 

Portugal 4.4 0.1 4.5 

World Total 238 45 283 

1 For China, left-hand data are the amounts classified as official additions to the grid or operational by year’s end; right-hand data are total installed capacity. 

The world totals include the higher figures for China. See Wind Power section in Market and Industry Trends by Technology and relevant endnotes for further 

elaboration of these categories. 

Note: Countries are ordered according to total installed capacity; order of top 10 for 2012 additions is United States, China, Germany, India, United Kingdom, 

Italy, Spain, Brazil, Canada, and Romania. Country data are rounded to nearest 0.1 GW; world data are rounded to nearest GW. Rounding is to account for 

uncertainties and inconsistencies in available data; where totals do not add up, the difference is due to rounding or repowering/removal of existing data. Figures 

reflect a variety of sources, some of which differ to small degrees, reflecting variations in accounting or methodology. For more information and statistics, see 

Wind Power text in Market and Industry Trends by Technology section and relevant endnotes. 


100

TABLE R9. GLOBAL TRENDS IN RENEWABLE ENERGY INVESTMENT, 2004–2012 

Category 2004 2005 2006 2007 2008 2009 2010 2011 2012 

Billion USD 

New Investment by Stage 

1 Technology Research 

Government R&D 2.0 2.1 2.3 2.7 2.8 5.2 4.7 4.7 4.8 

Corporate RD&D 3.0 2.9 3.3 3.6 4.0 4.0 4.6 4.8 4.8 

2 Development/Commercialisation 

Venture Capital 0.4 0.6 1.2 2.2 3.2 1.6 2.5 2.6 2.3 

3 Manufacturing 

Private Equity Expansion Capital 0.3 1.0 3.0 3.7 6.8 2.9 3.1 2.6 1.4 

Public Markets 0.3 3.8 9.1 22.2 11.6 12.5 11.8 10.6 4.1 

4 Projects 

Asset Finance 24.8 44.0 72.1 100.6 124.2 110.3 143.7 180.1 148.5 

(re-invested equity) (0.0) (0.1) (0.7) (3.1) (3.4) (1.8) (5.5) (3.7) (1.5) 

Small distributed capacity 8.9 10.5 9.8 14.3 22.5 33.5 62.4 77.4 80.0 

Total New Investment 39.6 64.7 100.0 146.2 171.7 168.2 227.2 279.0 244.4 

5 M&A Transactions 8.6 25.9 35.6 58.6 59.4 64.3 57.8 73.5 52.2 

Total Investment 48.4 90.7 135.6 204.7 231.0 232.5 285.8 352.5 296.7 

New Investment by Technology 

Solar power 12.3 16.4 22.1 39.1 59.3 62.3 99.9 158.1 140.4 

Wind power 14.4 25.5 32.4 57.4 69.9 73.7 96.2 89.3 80.3 

Biomass and waste-to-energy 6.3 8.3 11.8 13.1 14.1 13.2 13.7 12.9 8.6 

Hydro


TABLE R10. SHARE OF PRIMARY AND FINAL ENERGY FROM RENEWABLES, 

EXISTING IN 2010/2011 AND TARGETS (Continued) 

Country Primary Energy Final Energy 

Share 

Target Share 

(2010/2011) 1 (2011) 

Target 

EU-27 13% k 20% by 2020 

Albania k 18% by 2020 k 38% by 2020 

Algeria k 40% by 2030 

Argentina 9.8% 


Austria 2 27% 31% k 45% by 2020 

Barbados k 10% by 2012 

k 20% by 2016 

Belarus 6.5% 

Belgium 5.5% k 13% by 2020 

Bosnia and Herzegovina 7.7% k 40% by 2020 

Botswana k 1% by 2016 

Brazil 46% 

Bulgaria 7.0% 13% k 16% by 2020 

Burundi k 2.1% by 2020 

Cameroon 69% 

(2009) 

Canada 17% 

Chile 27% 

China 8% k 9.5% by 2015 

Colombia 32% 

Costa Rica 83% 

Côte d’Ivoire k 3% by 2013 

k 5% by 2015 

Croatia 12% k 20% by 2020 

Cyprus 6% k 13% by 2020 

Czech Republic 2 8% 10% k 13.5% by 2020 

Democratic Republic 

of the Congo 

97% 

Denmark 19% 26% k 35% by 2020 

k 100% by 2050 

Djibouti k 100% by 2020 

Dominican Republic k 25% by 2025 

Ecuador 17% 

Egypt 4.1% 

El Salvador 76% 

102




Share 

Target Share 

(2010/2011) 1 (2011) 

Target 

Eritrea 65% 

Estonia 18% 26% k 25% by 2020 

Fiji k 100% by 2013 

Finland 20% 33% k 25% by 2015 

k 28% by 2020 

k 40% by 2025 

France 6% 13% k 23% by 2020 

Gabon k 80% by 2020 

Germany 2 9% 12% k 18% by 2020 

k 30% by 2030 

k 45% by 2040 

k 60% by 2050 

Greece 2 6.1% 11% k 20% by 2020 

Grenada k 20% by 2020 

Guatemala 94% k 80% by 2026 

Honduras 97% 

Hungary 2 8.3% 8.2% k 14.65% by 2020 

India 7% 4.9% 

Indonesia 3.8% k 25% by 2025 

Iran 1.2% 

Ireland 9.1% 6.2% k 16% by 2020 

Israel k 50% by 2020 

Italy 11% 12% k 17% by 2020 

Jamaica k 15% by 2020 

k 20% by 2030 

Japan 6.9% k 10% by 2020 

Jordan k 7% by 2015 

k 10% by 2020 

Kenya 69% 

Kosovo k 25% by 2020 

Laos k 30% by 2025 

Latvia 50% 33% k 40% by 2020 

Lebanon k 12% by 2020 

Libya k 10% by 2020 

Lithuania 14% k 20% by 2025 18% k 23% by 2020 

Luxembourg 2.8% k 11% by 2020 

Macedonia 10% k 28% by 2020 

Madagascar k 54% by 2020 


103





Share 

Target Share 

(2010/2011) 1 (2011) 

Target 

Malawi 88% 

(2012) 

k 7% by 2020 

Mali k 15% by 2020 

Malta 0.4% k 10% by 2020 

Mauritania k 15% by 2015 

k 20% by 2020 

Mauritius k 35% by 2025 

Mexico 6.9% 

Moldova k 20% by 2020 k 17% by 2020 

Mongolia k 20–25% by 2020 

Montenegro k 33% by 2020 

Morocco k 8% by 2012 k 10% by 2012 

Mozambique 97% 

(2009) 

Netherlands 2 4.4% k 16% by 2020 

New Zealand 39% 

Nicaragua 65% 

Niger k 10% by 2020 

Norway 65% k 67.5% by 2020 

Peru 24% 

Palau k 20% by 2020 

Palestinian Territories k 25% by 2020 

Philippines 41% 

Poland 8.9% k 12% by 2020 11% k 15% by 2020 

Portugal 23% 25% k 31% by 2020 

Romania 16% 24% k 24% by 2020 

Russia 5.6% 

Rwanda 87% 

Samoa k 20% by 2030 

Serbia 12% k 27% by 2020 

Slovakia 7.5% 9.5% k 14% by 2020 

Slovenia 14% 19% k 25% by 2020 

Somalia 96% 

(2008) 

South Korea 2.75% k 4.3% by 2015 

k 6.1% by 2020 

k 11% by 2030 

South Sudan 66% 

104




Share 

Target Share 

(2010/2011) 1 (2011) 

Target 

Spain 2 13% 15% k 20.8% by 2020 

St. Lucia k 20% by 2020 

Sudan 70 

(2009) 

Sweden 2 38% 48% k 50% by 2020 

k 49% by 2020 

Switzerland 14% k 24% by 2020 

Syria k 4.3% by 2011 

Tanzania >90% 

Thailand 21% k 25% by 2022 

Tonga k 100% by 2013 

Turkey 11% k 30% by 2023 

Uganda 90% 

Ukraine 1.8% k 19% by 2030 k 11% by 2020 

United Kingdom 4% 3.8% k 15% by 2020 

Uruguay 44% k 50% by 2015 

Vietnam 3.2% k 5% by 2020 

k 8% by 2025 

k 11% by 2050 

1 National share is for 2010/2011 unless otherwise noted. 

2 Final energy targets for all EU-27 countries are set under EU Directive 2009/28/EC. The governments of Austria, the Czech Republic, Germany, Greece, 

Hungary, Spain, and Sweden have set additional targets that are shown above EU targets. The government of the Netherlands has reduced its more ambitious 

target to the level set in the EU Directive. Some countries shown have other types of targets (see Reference Tables R11 and R12). 



105


TABLE R11. SHARE OF ELECTRICITY PRODUCTION FROM RENEWABLES, EXISTING IN 2011 AND TARGETS 

Country 

EU-27 20.6% 

Share 

(2011) 1 Target 

Algeria 2.2% 

(2012) 

k 5% by 2017 

k 40% by 2030 

Antigua and Barbuda k 5% by 2015 

k 10% by 2020 

k 15% by 2030 

Argentina 31% k 8% by 2016 

Australia 11% k 20% by 2020 

Bahamas, The k 15% by 2020 

k 30% by 2030 

Bangladesh 4.6% k 5% by 2015 

k 10% by 2020 

Barbados k 29% by 2029 

Belgium 10.8% k 20.9% by 2020 

Cape Verde 7.5% k 50% by 2020 

Chile 2 5.9% k 5% by 2014 

k 10% by 2024 

Cook Islands k 50% by 2015 

k 100% by 2020 

Costa Rica k 100% by 2021 

Croatia 46% k 35% by 2020 

Denmark 3 40% k 50% by 2020 

k 100% by 2050 

Dominica 

k 100% (no date) 

East Timor k 50% by 2020 

Egypt 11% k 20% by 2020 

(2012) 

Eritrea 


Estonia 9.1% k 18% by 2015 

Fiji k 90% by 2015 

France 12% k 27% by 2020 

Gabon 42% k 70% by 2020 

Germany 21% k 35% by 2020 

k 50% by 2030 

k 65% by 2040 

k 80% by 2050 

Ghana k 10% by 2020 

Greece 15% k 40% by 2020 

Guatemala 64% k 60% by 2022 

Guyana 


India 11% k 10% by 2012 

Indonesia 16% k 26% by 2025 

Iraq 11% k 2% by 2030 

Ireland 20% k 40% by 2020 

Israel 0.5% k 5% by 2014 

k 10% by 2020 

Italy 2 14% k 26% by 2020 

non-hydro 

Jamaica k 15% by 2020 

Kiribati 


Kuwait k 15% by 2030 

Latvia 51% k 60% by 2020 

Lebanon k 12% by 2020 

Libya 0% 

(2012) 

k 7% by 2020 

k 10% by 2025 

Lithuania 8.4% k 20% by 2020 

Country 

Share 

(2011) 1 Target 

Luxembourg 2 11.6% k 11.8% by 2020 

Madagascar 52% k 75% by 2020 

Malaysia k 5% by 2015 

k 9% by 2020 

k 11% by 2030 

k 15% by 2050 

Mali 58% k 25% by 2020 

Marshall Islands k 20% by 2020 

Mauritius k 35% by 2025 

Mexico 16% k 35% by 2026 

Mongolia k 20-25% by 2020 

Morocco 33% k 42% by 2020 

(2012) 

New Zealand 76% k 90% by 2025 

Nigeria 20.1% k 5% by 2015 

k 10% by 2025 

Niue k 100% by 2020 

Pakistan 2 ~0% k 10% by 2012 

Palestinian Territories 0.72% k 10% by 2020 

(2012) 

Philippines 29% k 40% by 2020 

Portugal 47% k 59% by 2020 

Qatar k 20% by 2030 

Romania 28.1% k 43% by 2020 

Russia 2 0.3% k 2.5% by 2015 

k 4.5% by 2020 

Rwanda 55% k 90% by 2012 

Senegal k 15% by 2020 

Seychelles k 5% by 2020 

k 15% by 2030 

Solomon Islands k 50% by 2015 

South Africa 2.2% k 9% by 2030 

Spain 30.5% k 38.1% by 2020 

Sri Lanka 2 0.1% k 10% by 2016 

k 20% by 2020 

St. Kitts and Nevis k 20% by 2015 

St. Lucia k 5% by 2013 

k 15% by 2015 

k 30% by 2020 

St. Vincent and the 

Grenadines 

k 30% by 2015 

k 60% by 2020 

Sudan k 10% by 2016 

Thailand k 11% by 2011 

k 14% by 2022 

Tonga k 50% by 2015 

Tunisia 5.5% 

(2012) 

k 4% by 2011 

k 16% by 2016 

k 40% by 2030 

Turkey 25.3% k 30% by 2023 

Tuvalu k 100% by 2020 

Uganda 54% k 61% by 2017 


Scotland 

10.3% k 50% by 2015 

k 100% by 2020 

Uruguay 74.6% 

Vanuatu k 23% by 2014 

Vietnam k 5% by 2020 

Yemen k 15% by 2025 

106

TABLE R11 ANNEX. SHARE OF ELECTRICITY PRODUCTION FROM RENEWABLES, EXISTING IN 2011, 

COUNTRIES WITHOUT TARGETS 

Country Share (2011) 1 

Austria 69% 

Bahrain 0.006% (2012) 

Belarus 0.8% 

Bosnia and Herzegovina 29% 

Brazil 89% 

Bulgaria 8.4% 

Canada 63% 

Cameroon 88% 

China 18% 

Colombia 80% 

Costa Rica 91% 

Côte d’Ivoire 30% 

Cuba 3.2% (2010) 

Cyprus 4.7% 

Czech Republic 9.2% 

Democratic Republic of the Congo 99.6% (2009) 

El Salvador 63% 

Ethiopia 84% 

Finland 32% 

Honduras 65% (2010) 

Hungary 7.6% 

Iceland 100% 

Iran 5.1% 

Japan 

10.5%; 3.8% not 

including hydro >10 MW 

Jordan 0.5% 

Kazakhstan 14% 

Kenya 67.5%; 17.6% 

not including hydro 

Lebanon 12% (2012) 

Macedonia 21% 

Country Share (2011) 1 

Malawi 96.8%; 2.8% 

not including hydro 

Malta 0.8% 

Moldova 2.1% 

Montenegro 43% 

Mozambique 99.9% 

Netherlands 10.9% 

Nicaragua 32.7% 

Norway 96.6% 

Papua New Guinea 35.5% 

Peru 56.9% 

Poland 11.9% 

Senegal 10.3% 

Serbia 23.9% 

Slovakia 17.2% 

Slovenia 25.1% 

Somalia 69% (2012) 

South Korea 3% 

Sudan 63% 

Sweden 55% 

Switzerland 57% 

Tanzania 46% 

Thailand 7% 

Togo 0.6% 

Tunisia 5.5% (2012) 

Ukraine 5.8% 

United States 13% 

Uzbekistan 18% 

Venezuela 73% 

Zambia 99.6% (2010) 

1 National share is for 2011 unless otherwise noted. 

2 For certain countries, existing shares exclude large-scale hydro, because corresponding targets exclude large-scale hydro. These include: Chile, 

Italy, Luxembourg, Pakistan, Russia, and Sri Lanka. 

3 Denmark set a target of 50% electricity consumption supplied by wind power by 2020 in March 2012. 

Notes: Actual percentages are rounded to the nearest whole decimal for figures over 10% except where associated targets are expressed differently. 

A number of state/provincial and local jurisdictions have additional targets not listed here. The United States and Canada have de-facto state or 

provincial-level targets through existing RPS policies), but no national targets (see Reference Tables R12-R16). Some countries shown have other 

types of targets (see Reference Tables R10 and R12). See text of Policy Landscape section for more information about sub-national targets. Existing 

shares are indicative and are not intended to be a fully reliable reference. Share of electricity can be calculated using different methods. Reported 

figures often do not specify which method is used to calculate them, so the figures in this table for share of electricity are likely a mixture of the 

different methods and thus not directly comparable or consistent across countries. In particular, certain shares sourced from Observ’ER are different 

from those provided to REN21 by report contributors. In situations of conflicting shares, figures provided to REN21 by report contributors were given 

preference. 



107


TABLE R12. OTHER RENEWABLE ENERGY TARGETS (Continued) 

Country Sector/Technology Target 

EU-27 Transport All EU-27 countries are required to meet 10% of final energy consumption 

in the transport sector with renewables by 2020 

Algeria Wind 10 MW by 2013; 50 MW by 2015; 270 MW by 2020; 2,000 MW by 2030 

Solar PV 25 MW by 2013; 241 MW by 2015; 946 MW by 2020; 2,800 MW by 2030 

CSP 25 MW by 2013; 325 MW by 2015; 1,500 MW by 2020; 7,200 MW by 2030 

Argentina Renewable electricity 3 GW by 2016 

Australia 

(South Australia) 

Geothermal 30 MW electricity generation by 2016 

Renewable electricity 33% of electricity generation by 2020 

Austria Wind 2,000 MW addition by 2020 

Solar PV 1,200 MW addition by 2020 

Hydro 1,000 MW addition by 2020 

Bioenergy and biogas 200 MW addition by 2020 

Bangladesh Solar 500 MW by 2015 

Rural off-grid solar 2.5 million units by 2015 

Bioenergy 2 MW electricity plant by 2014 

Biogas 150,000 plants by 2016; 4 MW electricity plant by 2014 

Belgium Heating and cooling 11.9% share of renewables in gross final consumption 

in heating and cooling by 2020 

Transport 10.14% share of renewables in gross final consumption in transport by 2020 

(Walloonia) Final energy 20% share of renewables by 2020 

(Walloonia) Renewable electricity 8 TWh/year of renewable power by 2020 

Benin Rural energy 50% of rural electricity from renewables by 2025 

Brazil Wind 15.6 GW by 2021 

Small-scale hydro 7.8 GW by 2021 

Bioenergy 19.3 GW by 2021 

Bulgaria Solar PV 80 MW PV park operational by 2014 

Hydro 80 MW hydroelectric plant commissioned by 2011; 

three 174 MW hydropower plants by 2017–18 

Canada 

(New Brunswick) Renewable electricity 40% renewable power by 2020; increase renewable share 10% by 2016 

(Nova Scotia) Renewable electricity 20% by 2012; 25% by 2015 

(Saskatchewan) Renewables in general 33.3% by 2030 

(Prince Edward Island) Wind 30 MW increase by 2030 relative to 2011 

(Ontario) Renewable electricity 10,700 MW by 2022 

(Ontario) Wind 5,000 MW by 2025 

(Ontario) Solar PV 40 MW by 2025 

(Ontario) Hydro 1,500 MW by 2025 

China Renewable electricity 49 GW of new renewable capacity in 2013 

Wind 100 GW on-grid by 2015; 200 GW by 2020 

Solar PV 10 GW in 2013; 20 GW by 2015 

CSP 1 GW by 2015 

Hydro 290 GW by 2015 

Bioenergy 13 GW by 2015 

Solar thermal 280 GW th 

(400 million m 2 ) by 2015 

108



Colombia Grid-connected renewables 3.5% by 2015; 6.5% by 2020 

Off-grid renewables 20% of off-grid generation by 2015; 30% by 2020 

Czech Republic Transport 10.8% share of renewables in gross final consumption in transport by 2020 

Denmark Wind 50% share in electricity consumption by 2020 

Heating and cooling 39.8% by 2020 

Transport 10% by 2020 

Djibouti Solar PV 30% of rural electrification by 2017 

Egypt Non-hydro renewables 14% of electricity by 2020 

Wind 12% of electricity and 7,200 MW by 2020 

Solar PV 220 MW by 2020; 700 MW by 2027 

CSP 1,100 MW by 2020; 2,800 MW by 2027 

Eritrea Wind 50% of electricity generation (no date) 

Ethiopia Wind 770 MW by 2014 

Hydro 10,641.6 MW (>90% large-scale) by 2015; 22,000 MW by 2030 

Geothermal 75 MW by 2015; 450 MW by 2018; 1,000 MW by 2030 

Bagasse for bioenergy 

103.5 MW (no date) 

Finland Wind 884 MW by 2020 

Hydro 14,598 MW by 2020 

Bioenergy 13,152 MW by 2020 

France Solar PV and CSP Install 1 GW new capacity in 2013 

Wind 25 GW by 2020 

Offshore wind and ocean 6 GW by 2020 

Heating and cooling 33% by 2020 

Transport 10.5% by 2020 

Germany Heat 14% renewables in total heat supply by 2020 

Greece Solar PV 2,200 MW by 2030 

Heating and cooling 20% renewables in heating and cooling by 2020 

Guinea-Bissau Solar PV 2% of primary energy by 2015 

India Renewable electricity 53 GW capacity by 2017 

Wind 5 GW by 2017 

Solar 10 GW by 2017; 20 GW grid-connected by 2022; 

2,000 MW off-grid by 2020; 20 million solar lighting systems by 2022 

Small-scale hydro 2.1 GW by 2017 

Bioenergy 2.7 GW by 2017 


5.6 GW th 

(8 million m 2 ) of new capacity to be added between 2012 and 

2017 

Indonesia Wind, solar, hydro 1.4% share in primary energy (combined) by 2025 

Wind 0.1 GW by 2025 

Solar PV 156.76 MW by 2025 

Hydro 2 GW, including 0.43 GW micro hydro by 2025 

Pumped storage 1 3 GW by 2025 

Geothermal 6.3% share in primary energy and 12.6 GW electricity by 2025 

Biofuels 10.2% share in primary energy by 2025 

Iraq Wind 80 MW by 2016 

Solar PV 240 MW by 2016 

CSP 80 MW by 2016 


109




Ireland Heating 15% renewables share by 2020 

Italy Wind (onshore) 18,000 GWh generation and 12,000 MW capacity by 2020 

Wind (offshore) 2,000 GWh generation and 680 MW capacity by 2020 

Solar PV 23,000 MW by 2017 

Hydro 42,000 GWh generation and 17,800 MW capacity by 2020 

Geothermal 6,750 GWh generation and 920 MW capacity by 2020; 

300 ktoe in heating and cooling by 2020 

Bioenergy 19,780 GWh generation and 3,820 MW capacity by 2020; 

5,670 ktoe in heating and cooling by 2020 

Heating and cooling 17.1% by 2020 

Solar water and space 

heating 

1,586 ktoe by 2020 

Transport 17.4% by 2020 

Biofuels 2,899 ktoe in transport by 2020 

Japan Wind 5 GW by 2020; 8.03 GW offshore by 2030 

Solar PV 8 GW by 2020 

Hydro 49 GW by 2020 

Geothermal 0.53 GW by 2020; 3.88 GW by 2030 

Bioenergy 3.3 GW by 2020; 6 GW by 2030 

Wave and tidal 1,500 MW new capacity by 2030 

Jordan Renewable electricity 1,000 MW by 2018 

Wind 1,200 MW by 2020 


CSP 300 MW by 2020 

Solar water heating 30% of households by 2020 (from 13% in 2010) 

Kazakhstan Renewable electricity 1.04 GW by 2020 

Kenya Renewable electricity Double installed capacity by 2012 

Geothermal 5,000 MW by 2030 


Kuwait Wind 3.1 GW and 7.5 TWh by 2030 

Solar PV 3.5 GW and 4.2 TWh by 2030 

CSP 1.1 GW and 3.2 TWh by 2030 

Lebanon Wind 60–100 MW by 2015 

Hydro 40 MW by 2015 

Biogas 15–25 MW by 2015 

Cover 60% of annual demand for buildings using over 100 litres of hot 

water per day 

Solar water heating 133 MW th 

(190,000 m 2 ) newly installed capacity during 2009–2014 

Lesotho Renewable electricity 260 MW by 2030 

Rural energy 35% of rural electrification from renewables by 2020 

Libya Wind 260 MW by 2015; 600 MW by 2020; 1,000 MW by 2025 


CSP 125 MW by 2020; 375 MW by 2025 


by 2015; 250 MW th 

by 2020 

110



Luxembourg Heating and cooling 8.5% renewables in gross final consumption in heating and cooling in 2020 

Malawi Hydro 346.5 MW installed capacity by 2014 

Malaysia Renewable electricity 2,065 MW (excluding large-scale hydro), 11.2 TWh, or 10% of national 

supply; 6% capacity by 2015; 11% capacity by 2020; 14% capacity by 

2030; 36% capacity by 2050 

Micronesia Renewable electricity 10% renewable power in urban centers and 50% in rural areas by 2020 

Morocco Wind 2,000 MW by 2020 

Solar 2,000 MW by 2020 

Hydro 2,000 MW by 2020 


(400,000 m 2 ) by 2012; 1.2 GW th 

(1.7 million m 2 ) by 2020 

Mozambique Wind, solar, hydro 2,000 MW each (no date) 

Solar PV 


heating 

Wind for water pumping 

Biodigesters for biogas 

Renewable-energy based 

productive systems 

82,000 systems installed (no date) 

100,000 systems installed in rural areas (no date) 

3,000 stations installed (no date) 

1,000 systems installed (no date) 

5,000 installed (no date) 

Nepal Wind 1 MW by 2013 

Solar 3 MW by 2013 

Micro hydro 15 MW by 2013 

Netherlands Biofuels 5% in transport fuel mix by 2013; 10% by 2020 

Nigeria Wind 1 MW by 2015; 20 MW by 2025; 40 MW by 2035 

Solar PV utility-scale (>1 MW) 1 MW by 2015; 50 MW by 2025 

Small-scale hydro 100 MW by 2015; 734 MW by 2025; 19,000 MW by 2035 

Bioenergy 100 MW 2025; 800 MW by 2035 

Norway Renewable electricity 30 TWh electricity production by 2016 

Common electricity certificate 

market with Sweden 

26.4 TWh by 2020 

Palestinian Territories Wind 44 MW by 2020 


CSP 20 MW by 2020 

Bioenergy 21 MW by 2020 

Philippines Renewable electricity Triple 2010 renewable power capacity by 2030 

Wind 1,975 MW added by 2030 

Solar 284 MW added by 2030 

Hydro 5,394.1 MW added by 2030 

Geothermal 1,165 MW added by 2030 

Bioenergy 81 MW added by 2030 

Ocean 71 MW by 2030 

Poland Wind (offshore) 1 GW by 2020 


111




Portugal Renewable electricity 15.8 GW by 2020 

Qatar Solar PV 1.8 GW by 2014 

Romania Heating and cooling 22% by 2020 

Transport 10% by 2020 

Rwanda Hydro 340 MW by 2017 

Small-scale hydro 42 MW by 2015 

Geothermal 310 MW by 2017 

Biogas 300 MW by 2017 

Off-grid renewables 5 MW by 2017 

Samoa Renewable electricity Increase contribution of renewables for energy services and supply 

20% by 2030 

Saudi Arabia Renewable electricity 24 GW by 2020; 54 GW by 2032 

Solar 

41 GW by 2032 (25 GW CSP and 16 GW PV) 

Wind, geothermal, and 

waste-to-energy 2 Combined 13 GW by 2032 

Serbia Wind 1,390 MW (no date) 

Solar 150 MW by 2017 

South Africa Renewable electricity 17.8 GW by 2030 

South Korea 

Capacity 

Wind 4.155 million toe by 2020 

Solar PV 1.364 million toe by 2030 

Solar thermal 1.882 million toe by 2030 

Hydro 1.477 million toe by 2030 

Geothermal 1.261 million toe by 2030 

Bioenergy 10.357 million toe by 2030 

Organic MSW 2 11.021 million toe by 2030 

Ocean 1.540 million toe by 2030 

Electricity Generation 

Renewable electricity 13,016 GWh (2.9%) by 2015; 21,977 GWh (4.7%) by 2020; 

39,517 GWh (7.7%) by 2030 

Wind 100 MW by 2013; 900 MW by 2016; 1.5 GW by 2019; 

16,619 GWh by 2030 

Solar PV 2,046 GWh by 2030 

Solar thermal 1,971 GWh by 2030 

Large-scale hydro 3,860 GWh by 2030 

Small-scale hydro 1,926 GWh by 2030 

Geothermal 2,803 GWh by 2030 

Forest bioenergy 2,628 GWh by 2030 

Biogas 161 GWh by 2030 

Landfill gas 1,340 GWh by 2030 

Ocean 6,159 GWh by 2030 

112



Spain 

Sri Lanka 

Electricity 

Onshore wind 35,000 MW by 2020 

Offshore wind 750 MW by 2020 


CSP 4,800 MW by 2020 

Hydro 13,861 MW by 2020 

Pumped storage 1 8,811 MW by 2020 


Bioenergy (from solids) 1,350 MW by 2020 

Organic MSW 2 200 MW by 2020 


Ocean energy 100 MW by 2020 

Heating and Cooling 

Renewables in general 18.9% by 2020 


heating 

644 ktoe by 2020 

Geothermal 9.5 ktoe by 2020 

Bio-heat 4,653 ktoe by 2020 

Heat pumps 50.8 ktoe by 2020 

Transport 

Renewables in general 11.3% renewables in final consumption of energy in transport by 2020 

Biodiesel 7% of total energy in transport fuel use by 2012 and 2013; 

2,313 ktoe by 2020 

Ethanol/bio-ETBE 400 ktoe by 2020 

Electricity for transport 501 ktoe from renewable sources by 2020 

Final Energy 

Wind 6.3% by 2020 

Solar 3% by 2020 

Hydro 2.9% by 2020 

Geothermal, ocean energy, 

and heat pumps 

5.8% by 2020 

Bioenergy, biogas, and 0.1% by 2020 

organic MSW 2 

Biofuels 2.7% by 2020 

Wind, small-scale hydro, 

and bio-power 

10% of electricity generation by 2015 

Biofuels 20% supply of all liquid fuels by 2020 

Sudan Wind 320 MW by 2031 


CSP 50 MW by 2031 

Hydro 54 MW by 2031 

Bioenergy (from solids) 80 MW by 2031 



113




Swaziland Solar water heating Installed in 20% of all public buildings by 2014 

Sweden Renewable electricity 25 TWh more renewable electricity than in 2002 by 2020 

Common electricity certificate 

market with Norway 

26.4 TWh by 2020 

Transport Vehicle fleet that is independent from fossil fuels by 2030 

Switzerland Renewable electricity 11.94 TWh by 2035; 24.22 TWh by 2050 

Hydro 43 TWh by 2035 

Syria Wind 150 MW by 2015; 1,000 MW by 2020; 1,500 MW by 2025; 

2,000 MW by 2030 

Solar PV 45 MW by 2015; 380 MW by 2020; 1,100 MW by 2025; 1,750 MW by 2030 

CSP 50 MW by 2025 

Bioenergy 140 MW by 2020; 260 MW by 2025; 400 MW by 2030 

Tajikistan Small-scale hydro 100 MW by 2020 

Thailand 

Electricity 

Wind 1,200 MW by 2022 

Solar 2,000 MW by 2022 

Hydro 1,608 MW by 2022 

Geothermal 

1 MW 

Bioenergy 3,630 MW by 2022 


Organic MSW 2 160 MW by 2022 

Wave and tidal 2 MW by 2022 

Heating 

Solar 100 ktoe by 2022 

Solid biomass 8,200 ktoe by 2022 

Biogas 1,000 ktoe by 2022 

Organic MSW 2 35 ktoe by 2022 

Transport 

Ethanol 9 million litres/day by 2022 

Biodiesel 5.97 million litres/day by 2022 

Advanced biofuels 25 million litres/day by 2022 

Trinidad and Tobago Renewable electricity 5% of peak demand (or 60 MW) by 2020 

Tunisia Renewable electricity 1,000 MW (16%) by 2016; 4,600 MW (40%) by 2030 

Wind 1,500 MW by 2030 


CSP 300 MW by 2030 

Bioenergy (from solids) 300 MW by 2030 

114



Uganda Solar home systems (PV) 400 kWp by 2012; 700 kWp by 2017 

Large-scale hydro 830 MW by 2012; 1,200 MW by 2017 

Mini and micro hydro 50 MW by 2012; 85 MW by 2017 

Geothermal 25 MW by 2012; 45 MW by 2017 

Organic MSW 2 15 MW by 2012; 30 MW by 2017 

Solar water heating 4.2 MW th 

(6,000 m 2 ) by 2012; 21 MW th 

(30,000 m 2 ) by 2017 

Biofuels 720,000 m 3 /year produced by 2012; 2.16 million m 3 /year produced by 2017 

Ukraine Solar 10% of energy balance by 2030; 90% annual increase to 2015 

United Arab Emirates 

(Abu Dhabi) Renewable electricity 7% renewables in generation capacity by 2020 

(Dubai) Renewable electricity 5% of generating capacity and 1 GW by 2030 

United Kingdom Heat 12% by 2020 

Biofuels 5% by 2014 

Uruguay Wind 1 GW by 2015 


Vietnam Biofuels Equivalent to 1% of domestic petroleum demand by 2015; 

5% of demand by 2025 

Yemen Wind 400 MW by 2025 


CSP 100 MW by 2025 



Zimbabwe Biofuels 10% share in liquid fuels by 2015 

1 Pure pumped storage plants are not energy sources but instead means for energy storage; as such, pumped storage involves conversion losses. Further, 

pumped storage plants can be fed by renewable and non-renewable energy sources. Pumped storage is included here because it can play an important role as 

balancing power, in particular for balancing variable renewable resources. 

2 It is not always possible to determine whether municipal solid waste (MSW) is total (including plastics) or only the organic share. Thailand is confirmed allorganic 

and Uganda is predominantly organic. 

Note: Some countries shown have other types of targets (see Reference Tables R10 and R11). 



115


TABLE R13. CUMULATIVE NUMBER OF COUNTRIES/STATES/PROVINCES ENACTING FEED-IN POLICIES 

Year Cumulative # Countries/States/Provinces Added That Year 

1978 1 United States 

1990 2 Germany 

1991 3 Switzerland 

1992 4 Italy 

1993 6 Denmark; India 

1994 9 Luxembourg; Spain; Greece 

1997 10 Sri Lanka 

1998 11 Sweden 

1999 14 Portugal; Norway; Slovenia 

2000 14 

2001 17 Armenia; France; Latvia 

2002 23 Algeria; Austria; Brazil; Czech Republic; Indonesia; Lithuania 

2003 29 Cyprus; Estonia; Hungary; South Korea; Slovak Republic; Maharashtra (India) 

2004 34 Israel; Nicaragua; Prince Edward Island (Canada); Andhra Pradesh and Madhya Pradesh (India) 

2005 41 Karnataka, Uttaranchal, and Uttar Pradesh (India); China; Turkey; Ecuador; Ireland 

2006 46 Ontario (Canada); Kerala (India); Argentina; Pakistan; Thailand 

2007 56 South Australia (Australia); Albania; Bulgaria; Croatia; Dominican Republic; Finland; Macedonia; 

Moldova; Mongolia 

2008 70 Queensland (Australia); California (USA); Chhattisgarh, Gujarat, Haryana, Punjab, Rajasthan, 

Tamil Nadu, and West Bengal (India); Iran; Kenya; Philippines; Tanzania; Ukraine 

2009 81 Australian Capital Territory, New South Wales, and Victoria (Australia); Hawaii, Oregon, and Vermont 

(USA); Japan; Kazakhstan; Serbia; South Africa; Taiwan 

2010 86 Bosnia and Herzegovina; Malaysia; Mauritius; Malta; United Kingdom 

2011 92 Rhode Island (USA); Nova Scotia (Canada); Ghana; Montenegro; Netherlands; Syria 

2012 97 Jordan; Nigeria; Palestinian Territories; Rwanda; Uganda 


(early) 

97 

99 Total Existing 

Note: “Cumulative number” refers to number of jurisdictions that had enacted feed-in policies as of the given year. “Total existing” discounts five countries that 

are known to have subsequently discontinued policies (Brazil, Mauritius, South Africa, South Korea, and the United States) and adds seven countries that are 

believed to have feed-in tariffs but with an unknown year of enactment (Honduras, Lesotho, Panama, Peru, Senegal, Tajikistan, and Uruguay). The U.S. PURPA 

policy (1978) is an early version of the feed-in tariff, which has since evolved. 


116

TABLE R14. CUMULATIVE NUMBER OF COUNTRIES/STATES/PROVINCES ENACTING RPS/QUOTA POLICIES 

Year Cumulative # Countries/States/Provinces Added That Year 

1983 1 Iowa (USA) 

1994 2 Minnesota (USA) 

1996 3 Arizona (USA) 

1997 6 Maine, Massachusetts, and Nevada (USA) 

1998 9 Connecticut, Pennsylvania, and Wisconsin (USA) 

1999 12 New Jersey and Texas (USA); Italy 

2000 13 New Mexico (USA) 

2001 15 Flanders (Belgium); Australia 

2002 18 California (USA); Wallonia (Belgium); United Kingdom 

2003 21 Japan; Sweden; Maharashtra (India) 

2004 34 Colorado, Hawaii, Maryland, New York, and Rhode Island (USA); Nova Scotia, Ontario, and Prince 

Edward Island (Canada); Andhra Pradesh, Karnataka, Madhya Pradesh, and Orissa (India); Poland 

2005 38 District of Columbia, Delaware, and Montana (USA); Gujarat (India) 

2006 39 Washington State (USA) 

2007 44 Illinois, New Hampshire, North Carolina, and Oregon (USA); Northern Mariana Islands (USA) 

2008 51 Michigan, Missouri, and Ohio (USA); Chile; India; Philippines; Romania 

2009 52 Kansas (USA) 

2010 55 British Columbia (Canada); South Korea; Puerto Rico (USA) 

2011 56 Israel 

2012 58 China; Norway 


(early) 

58 

76 Total Existing 

Note: “Cumulative number” refers to number of jurisdictions that had enacted RPS/Quota policies as of the given year. Jurisdictions are listed under year of 

first policy enactment; many policies shown have been revised or renewed in subsequent years, and some policies shown may have been repealed or lapsed. 

“Total existing” adds 18 jurisdictions believed to have RPS/Quota policies but whose year of enactment is not known (Indonesia, Kyrgyzstan, Lithuania, 

Malaysia, Palau, Portugal, Romania, Sri Lanka, United Arab Emirates, and the Indian states of Chhattisgarh, Haryana, Kerala, Punjab, Rajasthan, Tamil Nadu, 

Uttarakhand, Uttar Pradesh, and West Bengal). In the United States, there are 10 additional states/territories with policy goals that are not legally binding RPS 

policies (Guam, Indiana, North Dakota, Oklahoma, South Dakota, U.S. Virgin Islands, Utah, Vermont, Virginia, and West Virginia). Three additional Canadian 

provinces also have non-binding policy goals (Alberta, Manitoba, and Quebec). The Italian RPS is being phased out according to new directives from the government 

but it was still in place as of early 2013. 



117


TABLE R15. NATIONAL AND STATE/PROVINCIAL BIOFUEL BLEND MANDATES 

Country 

Angola 

Argentina 

Australia 

Belgium 

Brazil 

Canada 

China 

Colombia 

Costa Rica 

Ethiopia 

Guatemala 

India 

Indonesia 

Jamaica 

Malawi 

Malaysia 

Mandate 

E10 

E5 and B7 

Provincial: E4 and B2 in New South Wales; E5 in Queensland 

E4 and B4 

E18–25 and B5 

National: E5 and B2. Provincial: E5 and B4 in British Columbia; E5 and B2 in Alberta; E7.5 and B2 in 

Saskatchewan; E8.5 and B2 in Manitoba; E5 in Ontario 

E10 in nine provinces 

E8 

E7 and B20 

E5 

E5 

E5 

B2.5 and E3 

E10 

E10 

B5 

Mozambique E10 in 2012–2015; E15 in 2016–2020; E20 from 2021 

Paraguay 

E24 and B1 

Peru B2 and E7.8 

Philippines 

South Africa 

E10 and B2 

E10 

South Korea B2.5 

Sudan 

Thailand 

Turkey 

United States 

E5 

E5 and B5 

E2 

National: The Renewable Fuels Standard 2 (RFS2) requires 136 billion litres (36 billion gallons) of renewable 

fuel to be blended annually with transport fuel by 2022. State: E10 in Missouri and Montana; E9–10 in 

Florida; E10 in Hawaii; E2 and B2 in Louisiana; B4 by 2012, and B5 by 2013 (all by July 1 of the given year) 

in Massachusetts; E10 and B5, B10 by 2013, and E20 by 2015 in Minnesota; B5 after 1 July 2012 in New 

Mexico; E10 and B5 in Oregon; B2 one year after in-state production of biodiesel reaches 40 million gallons, 

B5 one year after 100 million gallons, B10 one year after 200 million gallons, and B20 one year after 

400 million gallons in Pennsylvania; E2 and B2, increasing to B5 180 days after in-state feedstock and 

oil-seed crushing capacity can meet 3% requirement in Washington. 

Uruguay B5; E5 by 2015 

Vietnam 

Zambia 

Zimbabwe 

E5 

E10 and B5 

E5, to be raised to E10 and E15 

Note: Mexico has a pilot E2 mandate in the city of Guadalajara. The Dominican Republic has a target of B2 and E15 for 2015 but has no current blending 

mandate. Chile has a target of E5 and B5 but has no current blending mandate. Panama is planning the introduction of an ethanol mandate in 2013 at E4 in 

2014, E7 in 2015, and E10 in 2016. Fiji approved voluntary B5 and E10 blending in 2011 with a mandate expected. The Kenyan city of Kisumu has an E10 

mandate. Nigeria has a target of E10 but has no current blending mandate. Ecuador has set targets of B2 by 2014 and B17 by 2024; it also has an E5 pilot 

programme in several provinces. Reference Table R15 lists only biofuel blend mandates, additional transportation and biofuel targets can be found in 

Reference Table R12. 


118

TABLE R16. CITY AND LOCAL RENEWABLE ENERGY POLICIES: SELECTED EXAMPLES (Continued) 

Targets for Renewable Share of Energy, All Consumers 

Boulder, CO, USA 30% of total energy by 2020 

Calgary, AB, Canada 30% of total energy by 2036 

Cape Town, South Africa 10% of total energy by 2020 

Fukushima Prefecture, Japan 100% of total energy by 2040 

Hamburg, Germany 20% of total energy by 2020; 100% by 2050 

London, U.K. 25% of total energy by 2030 

Nagano Prefecture, Japan 70% of total energy by 2050 

Paris, France 25% of total energy by 2020 

Skellefteå, Sweden Net exporter of biomass, hydro, or wind energy by 2020 

Targets for Renewable Share of Electricity, All Consumers 

Adelaide, Australia 15% by 2014 

Amsterdam, Netherlands 25% by 2025; 50% by 2040 

Austin, TX, USA 35% by 2020 

Cape Town, South Africa 15% by 2020 

Munich, Germany 100% by 2025 

Nagano Prefecture, Japan 30% by 2050; 20% by 2030; 10% by 2020 

San Francisco, CA, USA 100% by 2020 

Skellefteå, Sweden 100% by 2020 

Taipei City, Taiwan 12% by 2020 

Ulm, Germany 100% by 2025 

Wellington, New Zealand 78–90% by 2020 

Targets for Renewable Electric Capacity 

Adelaide, Australia 2 MW of solar PV on residential and commercial buildings by 2020 

Los Angeles, CA, USA 1.3 GW of solar PV by 2020 

San Diego, CA, USA 50 MW renewable energy goal by 2013 

San Francisco, CA, USA 100% of peak demand (950 MW) by 2020 

Targets for Government Own-Use Purchases of Renewable Energy 

Bhubaneswar, India 

Hepburn Shire, Australia 

Reduce conventional energy use 15% by 2012 through the use of renewables and 

energy efficiency 

100% of own-use energy in public buildings; 8% of electricity for public lighting 

Malmö, Sweden 100% of own-use energy by 2030 

Portland, OR, USA 100% of own-use electricity by 2030 

Surat, India 82% of own use electricity from non-conventional sources by 2014 

Sydney, Australia 

100% of own-use electricity in buildings; 20% for street lamps 

Washington, DC, USA 100% of its own-use electricity in 2012 


119



Heat-Related Mandates 

Amsterdam, Netherlands 

Chandigarh, India 

Los Angeles, CA, USA 

Loures, Portugal 

Munich, Germany 

Nantes, France 

District heating for at least 200,000 houses by 2040 (using biogas, biomass, and 

waste heat) 

Mandatory use of solar water heating in industries, hotels, hospitals, jails, canteens, 

housing complexes, and government and residential buildings as of 2013 

Solar-ready roofs and electric vehicle-ready components required for all new 

buildings (as of 2010) 

Solar thermal systems mandated in all sports facilities and schools that have good 

sun exposure as of 2013 

Reduce heat demand 80% by 2058 (base 2009) through passive solar design 

(space, process, and water heating) 

Extend district heating system to source heat from biomass boilers for half of city 

inhabitants by 2017 

Fossil Fuel Reduction Targets, All Consumers 

Göteborg, Sweden 100% of total energy fossil fuel-free by 2050 

Madrid, Spain 20% reduction in fossil fuel use by 2020 

Rajkot, India 10% reduction in fossil fuel use by 2013 

Seoul, South Korea 30% reduction in fossil fuel and nuclear energy use by 2030 

Växjö, Sweden 100% of total energy fossil fuel-free by 2030 

Vijayawada, India 10% reduction in fossil fuel use by 2018 

CO 2 

Emissions Reductions Targets, All Consumers 

Aarhus, Denmark Carbon-neutral by 2030 

Bottrop, Germany Reduce 50% by 2020 (base 2010) 

Chicago, IL, USA Reduce 80% by 2050 (base 1990) 

Copenhagen, Denmark Reduce 20% by 2015; carbon-neutral by 2025 

Dallas, TX, USA Carbon-neutral by 2030 

Göttingen, Germany Reduce 50% by 2020; 100% by 2050 

Hamburg, Germany Reduce 40% by 2020; 80% by 2050 (base 1990) 

Malmö, Sweden Zero net emissions by 2020 

Oslo, Norway Reduce 50% by 2030 (base 1991); carbon-neutral by 2050 

Seoul, South Korea Reduce 30% by 2020 (base 1990) 

Stockholm, Sweden Reduce emissions to 3 tons per capita by 2015 (base 5.5 tons per capita in 1990) 

Tokyo, Japan Reduce 25% by 2020 (base 2000) 

Toronto, ON, Canada Reduce 80% by 2050; 30% by 2020 (base 1990) 

120


Urban Planning 

Glasgow, Scotland, U.K. 

Hong Kong, China 

Malmö, Sweden 

Seoul, South Korea 

Sydney, Australia 

Vancouver, BC, Canada 

Yokohama, Japan 

”Sustainable Glasglow” aims for a 30% reduction in CO 2 

by 2020 (base 2006) and 

breaks down emission reduction targets as follows: combined heat and power/ 

district heating: 9%; biomass: 2%; biogas and waste: 6%; other renewable energy: 

3%; transport: 3%; fuel switching: 3%; and energy management systems: 6%. The 

plan includes: all new buildings must access their heating from the district heating 

system or propose a lower carbon alternative; 76 GWh of annual wind generation; 

and fiscal incentives for low-carbon transport (biogas/EVs). 

Target to become China’s “greenest region.” Strategy includes: limit the contribution 

of coal to less than 10% of the electricity generation mix by 2020, and 

phase out existing coal plants by 2020–2030; invest in construction/operation of 

district cooling infrastructure to use seawater; meet power demand of 100,000 

households with biogas (from landfill and waste water) by 2020; install SWH on all 

government buildings and swimming pools; install wind turbines to meet 1–2% 

of total electricity demand by 2020; and achieve E10 and B10 by 2020. Also, 

raise awareness through: PV arrays on government buildings; website to provide 

information on renewable energy technology suitable for use in Hong Kong; and 

news/events, educational resources, and information on suppliers of renewable 

energy equipment in Hong Kong. 

”Climate Neutral by 2020” outlines a plan to transform the energy mix to mainly 

solar, wind, hydro, and biogas. The city also targets a decrease in per capita 

energy consumption of 20% by 2020 (baseline: average annual use during the 

period of 2001 to 2005). Key strategies include: expansion of district heating and 

cooling; development of 100% renewable energy districts; replacement of older 

vehicles with 100% ”green fleet”; and deployment of EV infrastructure. 

By 2030, Seoul targets: 20% total energy from renewables; 20% reduction in 

energy consumption; 40% reduction in greenhouse gas emissions (base 1990); 

1 million new green jobs by promoting 10 green technologies, including solar 

cells, waste recovery, and green buildings. To foster a domestic market, Seoul is 

providing, among other things: seed funding; capital loans; trust guarantees to 

small-to medium-sized businesses; USD 100 million investment (USD 20,000 per 

technology/year) in R&D by 2030; and support for overseas marketing. 

“Sustainable Sydney 2030” outlines how the city can significantly reduce greenhouse 

gas emissions and take a holistic approach to planning. It targets a 70% 

reduction in emissions from 2006 levels by 2030 and a 25% renewable share of 

electricity by 2020. The city’s master plan will identify 15 “low-carbon zones” to 

be powered by biogas trigeneration plants; the development of a decentralised 

generation, transmission, and distribution network (infrastructure) to deliver 

power/heat/cooling with (bio) gas; a target for 360 MW of electric capacity from 

trigeneration using biogas by 2030; and 11 ”energy-plus” buildings in Central 

Park. 

“Greenest City 2020” is an action plan to achieve goals of zero carbon, zero waste, 

and healthy ecosystems by 2020. It consists of 10 smaller plans, each with a 

long-term goal and 2020 targets including: a carbon-neutral target for all buildings 

constructed from 2020 onward; financial incentives for the installation of SWH; EV 

charging stations in buildings; and a target to double the number of green jobs by 

2020 (over 2010 levels). 

“Yokohama Energy Vision” targets buildings, EVs, solar PV, wind, biomass, biogas, 

and SWH to reduce greenhouse gas emissions more than 30% per person by 

2020, and more than 80% by 2050 (base 1990). Includes mid-term targets: 1,300 

EVs, 4,000 smart meters, and 4,400 solar power systems deployed by 2013; subsidies 

for SWH installations and EV purchases; low-interest loans for renewables 

and energy efficiency; and a pilot, Yokohama Smart City Project. 



121


TABLE R17. ELECTRICITY ACCESS BY REGION AND COUNTRY (Continued) 

Region/Country Electrification Rate People Without 

Access to Electricity 

Target 

Share (%) of 

population with access 

Million Share (%) 

All Developing Countries 76.0% 1,265 

Africa 43.0% 590 

North Africa 99.0% 1 

Sub-Saharan Africa 30.0% 585 

ECOWAS 1 27.2% 173 k 100% by 2030 

Developing Asia 2 82.0% 628 

China and East Asia 91.0% 182 

South Asia 68.0% 493 

Latin America 94.0% 29 

Middle East 91.0% 18 

Afghanistan 16.0% 23.8 

Algeria 99.3% 0.2 

Angola 26.2% 13.7 

Argentina 95.0% 1.1 

Bahrain 99.4% 0.0 

Bangladesh 3 46.0% 88.0 k 100% by 2021 

Barbados 98.0% 0.005 

Belize 96.2% 0.01 

Benin 24.8% 6.7 

Bolivia 71.2% 2.2 

Botswana 55.0% 1.1 k 80% by 2016 

Brazil 99.7% 3.3 

Brunei 99.7 % 0.0 

Burkina Faso 14.6% 12.6 

Cambodia 24.0% 11.3 

Cameroon 48.7% 10.0 

Cape Verde 87.0% 64.0 

Chile 99.5% 0.0 

China 4 ~100% 4.0 k 100% by 2015 

Colombia 94.9 % 2.9 

Costa Rica 99.2% 0.0 

Côte d’Ivoire 47.3% 10 

Cuba 97.0% 0.3 

Democratic People's Republic of Korea 26.0% 

Democratic Republic of the Congo 15.0% 58 

Dominican Republic 96.2% 0.4 

Ecuador 93.4% 1.1 

East Timor 22.0% 0.9 

Egypt > 99.0 % 0.3 

El Salvador 96.8% 0.8 

Eritrea 32.0% 3.4 

Ethiopia 23.0% 65 k 75% by 2015 

Gabon 36.7% 0.9 

Ghana 70.0% 9.4 

122




Target 

Share (%) of 



Grenada 82.0% 

Guatemala 84.4% 2.7 

Guinea 15.0% 8 

Guinea-Bissau 15.0% 1 

Guyana 82.0% 

Haiti 34.0% 6.2 

Honduras 79.3% 2.2 

India 75.0% 293 k 100% by 2017 

Indonesia 6 73.0% 63 

Iran 98.4% 1.2 

Iraq 86.0 % 4.1 

Israel 99.7 % 0.0 

Jamaica 96.8% 0.2 

Jordan 99.0% 0.0 

Kenya 18.0% 33 

Kuwait 100% 0.0 

Laos 55.0% 

Lebanon 100% 0.0 

Lesotho 16.0% 1.7 

Liberia 15.0% 3 

Libya 99.0% 0.0 

Madagascar 19.0% 15.9 

Malawi 

1% (rural) 

< 9% (national) 

Malaysia 99.4% 0.2 

Mali 18.0% 13 

12.7 k 30% by 2020 

Marshall Islands 100% (urban) k 95% (rural) by 2015 

Mauritius 99.4% 0.0 

Mexico 97.6% 

Micronesia 5 

4.0% (rural) 

Mongolia 67.0% 0.9 

Morocco 97.0% 1.0 

Mozambique 12.0% 20.2 

Myanmar 13.0% 43.5 

Namibia 34.0% 1.4 

Nepal 10.0% 16.5 k 30% by 2030 

Nicaragua 64.8% 1.6 

Niger 8.0% 14 

Nigeria 50.0% 79 

Oman 98% 0.1 

Pakistan 67.0% 56 

Palestinian Territories 7 99.4% 

Panama 83.3% 0.4 


123





Target 

Share (%) of 



Paraguay 98.4% 0.2 

Peru 78.6% 4.2 

Philippines 6 83.0% 16.0 

Qatar 98.7% 0.0 

Rwanda k 16% by 2012 

Saudi Arabia 99.0% 0.3 

Senegal 42.0% 7.3 

Sierra Leone 15.0% 5 

Singapore 100% 0.0 

South Africa 75.0% 12.3 k 100% by 2014 

South Sudan 1.0% 

Sri Lanka 76.6% 4.8 

Sudan 36.0% 27.1 

Suriname 90.0% 

Syria 99.8% (rural) 1.5 

Tanzania 

2% (rural) 

15.0% (national) 

Thailand > 99% 0.5 

Togo 22.0% 5.3 

Trinidad and Tobago 92.0% 0.0 

Tunisia 99.5% 0.1 

Uganda 8.0% 29.0 

United Arab Emirates 100% 0.0 

Uruguay 99.8% 0.1 

Venezuela 97.3% 0.3 

Vietnam 98.0% 2.0 

Yemen 6 42.0% 14.2 

Zambia 

3.1% (rural) 

47.6% (urban) 

20.3% (national) 

Zimbabwe 41.5% 7.3 

38.0 k 30% (rural) by 2015 

10.5 k 51% (rural) 

k 90% (urban) 

k 66% (national) 

by 2030 

1 ECOWAS is the Economic Community of West African States, comprising the 15 West African countries of Benin, Burkina Faso, Cape Verde, Côte d’Ivoire, 

Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. 

2 Developing Asia is divided as follows: China and East Asia includes Brunei, Cambodia, China, East Timor, Indonesia, Laos, Malaysia, Mongolia, Myanmar, 

Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam, and other Asian countries and regions excluding South Asia; South Asia includes Afghanistan, 

Bangladesh, India, Nepal, Pakistan, and Sri Lanka. 

3 Bangladesh electrification rate is defined by the government as the number of villages electrified: 50,000 villages out of a total 78,896. 

4 China data calculated using 2011 official report of 4 million people with no access to electricity and total population of 1.3 billion. 

5 For Micronesia, rural electrification rate is defined by electrification of all islands outside of the four that host the state capital (which is considered urban). 

6 For Indonesia, Philippines, and Yemen, the rate is defined by the number of households with electricity connection. 

7 Palestinian Territories rate is defined by number of villages connected to the national electricity grid. 

Note: Rates and targets are national unless otherwise specified. 


124

TABLE R18. POPULATION RELYING ON TRADITIONAL BIOMASS FOR COOKING 

Regions and Selected Countries 

Population 

Percent 

Millions 

Africa 68% 698 

Nigeria 74% 117 

Ethiopia 96% 82 

Democratic Republic of the Congo 93% 63 

Tanzania 94% 42 

Kenya 80% 33 

Other Sub-Saharan Africa 75% 328 

North Africa 1% 2 

Developing Asia 1 51% 1,814 

India 66% 772 

Bangladesh 91% 149 

Indonesia 55% 128 

Pakistan 64% 111 

Philippines 50% 47 

Vietnam 56% 49 

Rest of Developing Asia 54% 171 

Latin America 14% 65 

Middle East 5% 10 

All Developing Countries 49% 2,588 

World 2 38% 2,588 

1 Developing Asia is divided as follows: China and East Asia includes Brunei, Cambodia, China, East Timor, Indonesia, Laos, Malaysia, Mongolia, Myanmar, the 

Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam, and other Asian countries and regions excluding South Asia; South Asia includes Afghanistan, 

Bangladesh, India, Nepal, Pakistan, and Sri Lanka. 

2 Includes countries in the OECD and in Eastern Europe/Eurasia. 



125

Notes 

METHODOLOGICAL NOTES 

This 2013 report edition follows seven previous editions of the 

Renewables Global Status Report (produced since 2005, with 

the exception of 2008). While the knowledge base of information 

used to produce these reports continues to expand with 

each passing year, along with the renewables industries and 

markets themselves, readers are directed to the previous report 

editions for historical details and elaborations that have formed 

the foundation for the present report. 

Most 2012 data for national and global capacity, growth, 

and investment portrayed in this report are preliminary and 

are rounded as appropriate. Where necessary, information 

and data that are conflicting, partial, or older are reconciled 

by using reasoned judgment and historical growth trends. 

Endnotes provide additional details, including references, 

supporting information, and assumptions where relevant. 

Each edition draws from hundreds of published references, 

a variety of electronic newsletters, numerous unpublished 

submissions from report contributors from around the world, 

personal communications with experts, and websites. 

Generally, there is no single exhaustive source of information 

for global renewable energy statistics. Some global aggregates 

must be built from the bottom up, adding or aggregating individual 

country information. Relatively little material exists that 

covers developing countries as a group, for example. The latest 

data available for developing countries are often some years 

older than data for developed countries, and thus extrapolations 

to the focus year have to be made from older data, based 

on assumed and historical growth rates. More precise annual 

increments are generally available only for wind, solar PV, and 

solar water collector capacity, as well as biofuels production. 

The GSR endeavours to accurately cover all renewable energy 

sources on a global level and to provide the best data available. 

Data should not be compared with prior versions of this report 

to obtain year-by-year increases as some adjustments are due 

to improved or adjusted statistics rather than to actual capacity 

changes. 

NOTE ON ACCOUNTING AND REPORTING 

A number of issues arise when accounting for and reporting 

renewable energy capacities and output. Several of these 

issues are discussed below, along with some explanation and 

justification for the approaches chosen in this report. 

1. CAPACITY VERSUS ENERGY DATA 

This report aims to give accurate estimates of capacity additions 

and totals, as well as energy generation. Both are subject 

to uncertainty, with the level of uncertainty differing from 

technology to technology. The section on Global Markets and 

Industry by Technology includes estimates for energy produced 

where possible but focuses mainly on electric power or thermal 

capacity data. This is because capacity data can be estimated 

with a greater degree of certainty. Actual heat and electricity 

generation figures are usually available only 12 months or more 

after the fact, and sometimes not at all. (For a better sense of 

average energy production from a specific technology or source, 

see capacity factors in Table 2.) 

2. CONSTRUCTED CAPACITY VERSUS CONNECTED CAPACITY AND 

OPERATIONAL CAPACITY 

Over the past few years, the solar PV and wind power markets 

have seen increasing amounts of capacity that was connected 

but not yet deemed officially operational, or constructed capacity 

that was not connected to the grid by year-end (and, in turn, 

capacity that was installed in one year and connected to the 

grid during the next). This phenomenon has been particularly 

evident from 2009 to 2012 for wind power installations in China. 

This has increasingly also been the case with solar PV, notably 

in Belgium, France, Germany, and Italy in recent years. Various 

sources use different timelines and methodologies for counting. 

Further, differences in figures for constructed, connected, and 

operational capacities are temporal and are also due to the 

rapid pace of deployment. In some cases, installations have 

kept well ahead of the ability, willingness, and/or legal obligation 

of grid connection, and/or have overshot official capacity 

limits. This situation will likely continue to make detailed annual 

statistics collection problematic in the fastest growing markets, 

and for as long as frequent changes to support frameworks and/ 

or technical and legal frameworks for grid connection remain 

under discussion. 

In past editions, the Renewables Global Status Report focused 

primarily on constructed capacity because it best correlates 

with flows of capital investments during the year. Starting with 

the 2012 edition, and particularly for the solar PV and wind 

power sections, the focus began shifting to capacity that has 

become operational—defined as connected and feeding 

electricity into the grid, or generating electricity if off-grid installations—during 

the calendar year (January to December), even 

if some of this capacity was installed during the previous year. 

The reason for this is the sources that the GSR draws from often 

have varying methodologies for counting installations, and most 

official bodies report grid connection statistics (at least with 

regard to solar PV). As a result, in many countries the data for 

actual installations are becoming increasingly difficult to obtain. 

Some renewable industry groups, including the European 

Photovoltaic Industry Association and the Global Wind Energy 

126

Council i , have shifted to tracking and reporting on operational/ 

grid-connected rather than installed capacities. 

As a result, some solar PV capacity that was installed in 2011 

is counted as newly connected capacity in 2012; and some 

capacity installed during 2012 that was not operational/ 

grid-connected by year-end will not be counted until 2013. This 

can have an impact on reported annual global growth rates, 

as well as on national data from year to year. The situation with 

wind power in China has been somewhat different from solar 

PV in that, even though a significant amount of new capacity 

was not yet commercially certified by year-end, most installed 

capacity was connected and feeding power into the grid. The 

situation in China is not likely to persist due to recent changes in 

permitting regulations. 

3. Bio-power capacity 

This report strives to provide the best and latest available data 

regarding bioenergy developments given existing complexities 

and constraints (see Sidebar 2 in GSR 2012). The reporting 

of biomass-fuelled combined heat and power (CHP) systems 

varies among countries, which adds to the challenges experienced 

when assessing total heat and electricity capacities and 

bioenergy outputs. Wherever possible, the total bio-power data 

presented include capacity and generation from both electricity-only 

and CHP systems using solid biomass, landfill gas, 

biogas, and liquid biofuels as well as the portion of electricity 

generated from biomass fuels when co-fired with coal or natural 

gas. 

In past editions of this report, the energy derived from incineration 

of the “biogenic” ii or “organic” share of municipal solid 

waste (MSW) was not included in the main text and tables 

(although where official data were specified, they were included 

in relevant endnotes). Starting with the 2012 edition of the 

GSR, capacity and output are included in the main text as well 

as in the global bio-power data presented in Reference Tables 

R1 and R2. This change was due to the fact that international 

databases (e.g., from the IEA, U.S. EIA, and EU) now track and 

report the biogenic portion of MSW separately from other MSW. 

Note that definitions vary slightly from one source to another, 

and it is not possible to ensure that all reported biogenic/ 

organic MSW falls under the same definition. 

renewable and non-renewable. (As noted in Sidebar 3, pumped 

storage can play an important role as balancing power, in 

particular when a large share of variable renewable resources 

appears in the generation mix.) 

This method of accounting is accepted practice by the 

industry. Reportedly, the International Journal of Hydropower 

and Dams does not include pumped storage in its capacity 

data; the German Environment Ministry (BMU) does not report 

pumped storage capacity with its hydropower and other 

renewable power capacities; and the International Hydropower 

Association is working to track and report the numbers 

separately as well. 

In this and the 2012 edition, the removal of pumped storage 

capacity data from hydropower statistics has a substantial 

impact on reported global hydropower capacity, and therefore 

also on total global renewable electric generating capacity 

relative to past editions of the GSR. As a result, the global 

statistics in this and the 2012 report should not be compared 

with prior data for total hydropower and total generating 

capacity. (Note, however, that the capacity number for 2010 in 

the Selected Indicators Table on page 14 of this report accounts 

for this change in methodology.) Data for non-hydro renewable 

capacity remain unaffected by this change. For future editions 

of the GSR, ongoing efforts are being made to further improve 

data. 

4. HYDROPOWER DATA AND TREATMENT OF PUMPED STORAGE 

Starting with the 2012 edition, the GSR attempts to report 

hydropower generating capacity without including pure 

pumped storage capacity (the capacity used solely for shifting 

water between reservoirs for storage purposes). The distinction 

is made because pumped storage is not an energy source 

but rather a means of energy storage. As such, it involves 

conversion losses and is potentially fed by all forms of energy, 

N 

i For example, see European Photovoltaic Industry Association, Global Market Outlook for Photovoltaics 2013-2017 (Brussels: May 2013). Also, the Global Wind 

Energy Council (GWEC) reported 569 MW of cumulative installed capacity in Mexico at the end of 2011, with an annual market of only 50 MW, even though an additional 

304 MW were completed by year-end, because this capacity was not fully grid-connected until early 2012; see GWEC, Global Wind Report, Annual Market 

Update 2011 (Brussels: 2012). 

ii The U.S. Energy Information Administration (EIA) defines biogenic waste as “paper and paper board, wood, food, leather, textiles and yard trimmings” (see 

http://205.254.135.7/cneaf/solar.renewables/page/mswaste/msw.html) and reports that it “will now include MSW in renewable energy only to the extent that the 

energy content of the MSW source stream is biogenic” (see www.eia.gov/totalenergy/data/monthly/pdf/historical/msw.pdf). A report from the IEA Bioenergy Task 

36 defines biogenic waste as “food and garden waste, wood, paper and to a certain extent, also textiles and diapers” (see www.ieabioenergytask36.org/Publications/2007-2009/Introduction_Final.pdf). 


Glossary 

GLOSSARY 

Absorption chillers. Chillers that use heat energy from any 

source (solar, biomass, waste heat, etc.) to drive air-conditioning 

or refrigeration systems. The heat source replaces 

the electric power consumption of a mechanical compressor. 

Absorption chillers differ from conventional (vapor compression) 

cooling systems in two ways: the absorption process is 

thermo-chemical in nature rather than mechanical; and water 

is circulated as a refrigerant, rather than chlorofluorocarbons 

(CFCs) or hydro chlorofluorocarbons (HCFCs), also called Freon. 

The chillers are generally supplied with district heat, waste 

heat, or heat from cogeneration, and they can operate with heat 

from geothermal, solar, or biomass resources. 

Biodiesel. A fuel produced from oilseed crops such as soy, 

rapeseed (canola), and palm oil, and from other oil sources 

such as waste cooking oil and animal fats. Biodiesel is used 

in diesel engines installed in cars, trucks, buses, and other 

vehicles, as well as in stationary heat and power applications. 

Bioenergy. Energy derived from any form of biomass, including 

bio-heat, bio-power, and biofuel. Bio-heat arises from the combustion 

of solid biomass (such as dry fuelwood) or other liquid 

or gaseous energy carriers. The heat can be used directly or 

used to produce bio-power by creating steam to drive engines 

or turbines that drive electricity generators. Alternatively, 

gaseous energy carriers such as biomethane, landfill gas, or 

synthesis gas (produced from the thermal gasification of biomass) 

can be used to fuel a gas engine. Biofuels for transport 

are sometimes also included under the term bioenergy (see 

Biofuels). 

Biofuels. A wide range of liquid and gaseous fuels derived from 

biomass. Biofuels—including liquid fuel ethanol and biodiesel, 

as well as biogas—can be combusted in vehicle engines as 

transport fuels and in stationary engines for heat and electricity 

generation. They also can be used for domestic heating and 

cooking (for example, as ethanol gels). Advanced biofuels are 

made from sustainably produced non-food biomass sources 

using technologies that are still in the pilot, demonstration, or 

early commercial stages. One exception is hydro-treated vegetable 

oil (HVO, where hydrogen is used to remove oxygen from 

the oils to produce a hydrocarbon fuel more similar to diesel), 

which is now produced commercially in several plants. 

Biogas/Biomethane. Biogas is a gaseous mixture consisting 

mainly of methane and carbon dioxide produced by the 

anaerobic digestion of organic matter (broken down by microorg 

an isms in the absence of oxygen). Organic material and/or 

waste is converted into biogas in a digester. Suitable feedstocks 

include agricultural residues, animal wastes, food industry 

wastes, sewage sludge, purpose-grown green crops, and the 

organic components of municipal solid wastes. Raw biogas can 

be combusted to produce heat and/or power; it can also be 

transformed into biomethane through a simple process known 

as scrubbing that removes impurities including carbon dioxide, 

siloxanes, and hydrogen sulphides. Biomethane can be injected 

directly into natural gas networks and used as a substitute 

for natural gas in internal combustion engines without fear of 

corrosion. 

Biomass. Any material of biological origin, excluding fossil fuels 

or peat, that contains a chemical store of energy (originally 

received from the sun) and available for conversion to a wide 

range of convenient energy carriers. These can take many 

forms, including liquid biofuels, biogas, biomethane, pyrolysis 

oil, or solid biomass pellets. 

Biomass pellets. Solid biomass fuel produced by compressing 

pulverised dry biomass, such as waste wood and agricultural 

residues. Torrefied pellets produced by heating the biomass 

pellets have higher energy content per kilogram, as well as 

better grindability, water resistance, and storability. Pellets 

are typically cylindrical in shape with a diameter of around 10 

millimetres and a length of 30–50 millimetres. Pellets are easy 

to handle, store, and transport and are used as fuel for heating 

and cooking applications, as well as for electricity generation 

and combined heat and power. 

Briquettes. Blocks of flammable matter made from solid 

biomass fuels, including cereal straw, that are compressed in 

a process similar to the production of wood pellets. They are 

physically much larger than pellets, with a diameter of 50–100 

millimetres and a length of 60–150 millimetres. They are less 

easy to handle automatically but can be used as a substitute for 

fuelwood logs. 

Capacity. The rated capacity of a heat or power generating 

plant refers to the potential instantaneous heat or electricity 

output, or the aggregate potential output of a collection of 

such units (such as a wind farm or set of solar panels). Installed 

capacity describes equipment that has been constructed, 

although it may or may not be operational (e.g., delivering electricity 

to the grid, providing useful heat, or producing biofuels). 

Capacity factor. The ratio of the actual output of a unit of 

electricity or heat generation over a period of time (typically one 

year) to the theoretical output that would be produced if the 

unit were operating without interruption at its rated capacity 

during the same period of time. 

Capital subsidy. A subsidy that covers a share of the upfront 

capital cost of an asset (such as a solar water heater). These 

include, for example, consumer grants, rebates, or one-time 

payments by a utility, government agency, or government-owned 

bank. 

Combined heat and power (CHP) (also called cogeneration). 

CHP facilities produce both heat and power from the combustion 

of fossil and/or biomass fuels, as well as from geothermal 

and solar thermal resources. The term is also applied to plants 

that recover “waste heat” from thermal power-generation 

processes. 

Concentrating photovoltaics (CPV). Technology that uses 

mirrors or lenses to focus and concentrate sunlight onto a 

relatively small area of photovoltaic cells that generate electricity 

(see Solar photovoltaics). Low-, medium-, and high-concentration 

CPV systems (depending on the design of reflectors or lenses 

used) operate most efficiently in concentrated, direct sunlight. 

Concentrating solar thermal power (CSP) (also called 

concentrating solar power or solar thermal electricity, STE). 

Technology that uses mirrors to focus sunlight into an intense 

128

solar beam that heats a working fluid in a solar receiver, which 

then drives a turbine or heat engine/generator to produce 

electricity. The mirrors can be arranged in a variety of ways, but 

they all deliver the solar beam to the receiver. There are four 

types of commercial CSP systems: parabolic troughs, linear 

Fresnel, power towers, and dish/engines. The first two technologies 

are line-focus systems, capable of concentrating the 

sun’s energy to produce temperatures of 400°C, while the latter 

two are point-focus systems that can produce temperatures 

of 800°C or higher. These high temperatures make thermal 

energy storage simple, efficient, and inexpensive. The addition 

of storage—using a fluid (most commonly molten salt) to store 

heat—usually gives CSP power plants the flexibility needed for 

reliable integration into a power grid. 

Conversion efficiency. The ratio between the useful energy 

output from an energy conversion device and the energy input 

into it. For example, the conversion efficiency of a PV module is 

the ratio between the electricity generated and the total solar 

energy received by the PV module. If 100 kWh of solar radiation 

is received and 10 kWh electricity is generated, the conversion 

efficiency is 10%. 

Distributed generation. Generation of electricity from 

dispersed, generally small-scale systems that are close to the 

point of consumption. 

Energy. The ability to do work, which comes in a number of 

forms including thermal, radiant, kinetic, chemical, potential, 

and electrical. Primary energy is the energy embodied in 

(energy potential of) natural resources, such as coal, natural 

gas, and renewable sources. Final energy is the energy delivered 

to end-use facilities (such as electricity to an electrical 

outlet), where it becomes usable energy and can provide 

services such as lighting, refrigeration, etc. When primary 

energy is converted into useful energy there are always losses 

involved. 

Energy service company (ESCO). A company that provides a 

range of energy solutions including selling the energy services 

from a renewable energy system on a long-term basis while 

retaining ownership of the system, collecting regular payments 

from customers, and providing necessary maintenance service. 

An ESCO can be an electric utility, cooperative, NGO, or private 

company, and typically installs energy systems on or near customer 

sites. An ESCO can also advise on improving the energy 

efficiency of systems (such as a building or an industry) as well 

as methods for energy conservation and energy management. 

Energiewende. German term that means “transformation of 

the energy system.” It refers to the move away from nuclear and 

fossil fuels towards a sustainable economy by means of energy 

efficiency improvements and renewable energy. 

Ethanol (fuel). A liquid fuel made from biomass (typically 

corn, sugar cane, or small cereals/grains) that can replace 

gasoline in modest percentages for use in ordinary sparkignition 

engines (stationary or in vehicles), or that can be used 

at higher blend levels (usually up to 85% ethanol, or 100% in 

Brazil) in slightly modified engines such as those provided in 

“flex-fuel vehicles.” Note that some ethanol production is used 

for industrial, chemical, and beverage applications rather than 

for fuel. 

Fee-for-service model. An arrangement to provide consumers 

with an electricity service, in which a private company retains 

ownership of the equipment and is responsible for maintenance 

and for providing replacement parts over the life of the service 

contract. A fee-for-service model can be a leasing or ESCO 

model. 

Feed-in tariff (also called feed-in policy, or FIT). A policy 

that (a) sets a fixed, guaranteed price over a stated fixed-term 

period when renewable power can be sold and fed into the 

electricity network, and (b) usually guarantees grid access to 

renewable electricity generators. Some policies provide a fixed 

tariff whereas others provide fixed premium payments that 

are added to wholesale market- or cost-related tariffs. Other 

variations exist, and feed-in tariffs for heat are evolving. 

Fiscal incentive. An economic incentive that provides actors 

(individuals, households, companies) with a reduction in their 

contribution to the public treasury via income or other taxes, 

or with direct payments from the public treasury in the form of 

rebates or grants. 

Generation. The process of converting energy into electricity 

and/or useful heat from a primary energy source such as wind 

energy, solar energy, natural gas, biomass, etc. 

Geothermal energy. Heat energy emitted from within the 

Earth’s crust, usually in the form of hot water or steam. It can 

be used to generate electricity in a thermal power plant or to 

provide heat directly at various temperatures for buildings, 

industry, and agriculture. 

Green energy purchasing. Voluntary purchase of renewable 

energy—usually electricity, but also heat and transport 

fuels—by residential, commercial, government, or industrial 

consumers, either directly from an energy trader or utility 

company, from a third-party renewable energy generator, or 

indirectly via trading of renewable energy certificates (RECs, 

also called green tags or guarantees of origin). It can create 

additional demand for renewable capacity and/or generation, 

often going beyond that resulting from government support 

policies or obligations. 

Grid parity. Occurs when the levelised cost of energy (LCOE) 

of an electricity source (e.g., solar PV) becomes equal to or less 

than the retail price of electricity from the grid. 

Heat pump. A device that transfers heat from a heat source 

to a heat sink using electricity to drive the transfer, using a 

refrigeration cycle. It can use the ground, a body of water, or 

the surrounding air as a heat source in heating mode, and as a 

heat sink in cooling mode. A heat pump can extract energy in 

several multiples of the electrical energy input, depending on 

its inherent efficiency and operating conditions. 

Hydropower. Electricity derived from the potential energy of 

water captured when moving from higher to lower elevations. 

Categories of hydropower projects include run-of-river, reservoir-based 

capacity, and low-head in-stream technology (the 

least developed). Hydropower covers a continuum in project 

scale from large (usually defined as more than 10 MW installed 

capacity, but the definition varies by country) to small, mini, 

micro, and pico. 

G 


Glossary 

Investment. Purchase of an item of value with an expectation 

of favourable future returns. In this report, new investment 

in renewable energy refers to investment in: technology 

research and development, commercialisation, construction 

of manufacturing facilities, and project development (including 

construction of wind farms, purchase and installation of solar 

PV systems). Total investment refers to new investment plus 

merger and acquisition (M&A) activity (the refinancing and sale 

of companies and projects). 

Investment tax credit. A taxation measure that allows investments 

in renewable energy to be fully or partially deducted from 

the tax obligations or income of a project developer, industry, 

building owner, etc. 

Joule/Kilojoule/Megajoule/Gigajoule/Terajoule/ 

Petajoule/Exajoule. A Joule (J) is a unit of work or energy 

equal to the energy expended to produce one Watt of power 

for one second. For example, one Joule is equal to the energy 

required to lift an apple straight up by one metre. The energy 

released as heat by a person at rest is about 60 J per second. 

A kilojoule (kJ) is a unit of energy equal to one thousand (10 3 ) 

Joules; a megajoule (MJ) is one million (10 6 ) Joules; and so on. 

The potential chemical energy stored in one barrel of oil and 

released when combusted is approximately 6 GJ; a tonne of dry 

wood contains around 20 GJ of energy. 

Leasing or lease-to-own. A fee-for-service arrangement in 

which a leasing company (generally an intermediary company, 

cooperative, or NGO) buys stand-alone renewable energy 

systems and installs them at customer sites, retaining ownership 

until the customer has made all payments over the lease 

period. Because the leasing periods are longer than most 

consumer finance terms, the monthly fees can be lower and the 

systems affordable for a larger segment of the population. 

Levelised Cost of Energy (LCOE). The unique cost price of 

energy outputs (e.g., USD/kWh or USD/GJ) of a project that 

makes the present value of the revenues equal to the present 

value of the costs over the lifetime of the project. 

Mandate/Obligation. A measure that requires designated 

parties (consumers, suppliers, generators) to meet a minimum, 

and often gradually increasing, target for renewable energy, 

such as a percentage of total supply or a stated amount of 

capacity. Costs are generally borne by consumers. Mandates 

can include renewable portfolio standards (RPS); building 

codes or obligations that require the installation of renewable 

heat or power technologies (often in combination with energy 

efficiency investments); renewable heat purchase requirements; 

and requirements for blending biofuels into transport fuel. 

Market concession model. A model in which a private 

company or NGO is selected through a competitive process 

and given the exclusive obligation to provide energy services to 

customers in its service territory, upon customer request. The 

concession approach allows concessionaires to select the most 

appropriate and cost-effective technology for a given situation. 

Net metering. A regulated arrangement in which utility customers 

who have installed their own generating systems pay only 

for the net electricity delivered from the utility (total consumption 

minus on-site self-generation). A variation that employs 

two meters with differing tariffs for purchasing electricity and 

exporting excess electricity off-site is called “net billing.” 

Ocean energy. Energy captured from ocean waves (generated 

by wind passing over the surface), tides, salinity gradients, and 

ocean temperature differences. Wave energy converters capture 

the energy of surface waves to generate electricity; tidal 

stream generators use kinetic energy of moving water to power 

turbines; and tidal barrages are essentially dams that cross tidal 

estuaries and capture energy as tides flow in and out. 

Power. The rate at which energy is converted per unit of time, 

expressed in Watts (Joules/second). 

Production tax credit. A taxation measure that provides the 

investor or owner of a qualifying property or facility with an 

annual tax credit based on the amount of renewable energy 

(electricity, heat, or biofuel) generated by that facility. 

Public competitive bidding (also called auction or tender). 

A procurement mechanism by which public authorities solicit 

bids for a given amount of renewable energy supply or capacity, 

generally based on price. Sellers offer the lowest price 

they would be willing to accept, but typically at prices above 

standard market levels. 

Pumped storage hydropower. Plants that pump water from a 

lower reservoir to a higher storage basin using surplus electricity, 

and reverse the flow to generate electricity when needed. 

They are not energy sources but means of energy storage and 

can have overall system efficiencies of around 80–90%. 

Regulatory policy. A rule to guide or control the conduct of 

those to whom it applies. In the renewable energy context, 

examples include mandates or quotas such as renewable 

portfolio standards, feed-in tariffs, biofuel blending mandates, 

and renewable heat obligations. 

Renewable energy certificate (REC). A certificate awarded to 

certify the generation of one unit of renewable energy (typically 

1 MWh of electricity but also less commonly of heat). In systems 

based on RECs, certificates can be accumulated to meet 

renewable energy obligations and also provide a tool for trading 

among consumers and/or producers. They also are a means of 

enabling purchases of voluntary green energy. 

Renewable energy target. An official commitment, plan, 

or goal set by a government (at the local, state, national, or 

regional level) to achieve a certain amount of renewable energy 

by a future date. Some targets are legislated while others are 

set by regulatory agencies or ministries. 

Modern bioenergy. Energy derived efficiently from solid, liquid, 

and gaseous biomass fuels for modern applications, such 

as space heating, electricity generation, combined heat and 

power, and transport (as opposed to traditional bioenergy). 

130

Renewable portfolio standard (RPS) (also called renewable 

obligation or quota). A measure requiring that a minimum 

percentage of total electricity or heat sold, or generation capacity 

installed, be provided using renewable energy sources. 

Obligated utilities are required to ensure that the target is met; if 

it is not, a fine is usually levied. 

Smart energy system. A smart energy system aims to optimise 

the overall efficiency and balance of a range of interconnected 

energy technologies and processes, both electrical and 

non-electrical (including heat, gas, and fuels). This is achieved 

through dynamic demand- and supply-side management; 

enhanced monitoring of electrical, thermal, and fuel-based 

system assets; control and optimisation of consumer equipment, 

appliances, and services; better integration of distributed 

energy (on both the macro and micro scales); as well as cost 

minimisation for both suppliers and consumers. 

Smart grid. Electrical grid that uses information and communications 

technology to co-ordinate the needs and capabilities 

of the generators, grid operators, end users, and electricity 

market stakeholders in a system, with the aim of operating all 

parts as efficiently as possible, minimising costs and environmental 

impacts, and maximising system reliability, resilience, 

and stability. 

Solar collector. A device used for converting solar energy 

to thermal energy (heat), typically used for domestic water 

heating but also used for space heating, industrial process 

heat, or to drive thermal cooling machines. Evacuated tube and 

flat-plate collectors that operate with water or a water/glycol 

mixture as the heat-transfer medium are the most common 

solar thermal collectors used worldwide. These are referred 

to as glazed water collectors because irradiation from the sun 

first hits a glazing (for thermal insulation) before the energy is 

converted to heat and transported away by the heat transfer 

medium. Unglazed water collectors, often referred to as swimming 

pool absorbers, are simple collectors made of plastics and 

used for lower temperature applications. Unglazed and glazed 

air collectors use air rather than water as the heat-transfer 

medium to heat indoor spaces, or to pre-heat drying air or 

combustion air for agriculture and industry purposes. 

Solar home system (SHS). A stand-alone system composed 

of a relatively small photovoltaic (PV) module, battery, and 

sometimes a charge controller, that can power small electric 

devices and provide modest amounts of electricity to homes for 

lighting and radios, usually in rural or remote regions that are 

not connected to the electricity grid. 

Solar photovoltaics (PV). A technology used for converting 

solar radiation (light) into electricity. PV cells are constructed 

from semi-conducting materials that use sunlight to separate 

electrons from atoms to create an electric current. Modules 

are formed by interconnecting individual solar PV cells. 

Monocrystalline modules are more efficient but relatively more 

expensive than polycrystalline silicon modules. Thin film solar 

PV materials can be applied as flexible films laid over existing 

surfaces or integrated with building components such as roof 

tiles. Building-integrated PV (BIPV) replaces conventional 

materials in parts of a building envelop, such as the roof or 

façade. 

Solar pico system (SPS). A very small solar PV system—such 

as a solar lamp or an information and communication technology 

(ICT) appliance—with a power output of 1–10 W that 

typically has a voltage up to 12 volt. 

Solar water heater (SWH). An entire system—consisting of 

a solar collector, storage tank, water pipes, and other components—that 

converts the sun’s energy into “useful” thermal 

(heat) energy for domestic water heating, space heating, process 

heat, etc. Depending on the characteristics of the “useful” 

energy demand (potable water, heating water, drying air, etc.) 

and the desired temperature level, a solar water heater is 

equipped with the appropriate solar collector. There are two 

types of solar water heaters: pumped solar water heaters use 

mechanical pumps to circulate a heat transfer fluid through the 

collector loop (active systems), whereas thermosiphon solar 

water heaters make use of buoyancy forces caused by natural 

convection (passive systems). 

Subsidies. Government measures that artificially reduce the 

price that consumers pay for energy or reduce production 

costs. 

Traditional biomass. Solid biomass—including agricultural 

residues, animal dung, forest products, and gathered fuelwood—that 

is often used unsustainably and combusted in 

inefficient and usually polluting open fires, stoves, or furnaces 

to provide heat energy for cooking, comfort, and small-scale 

agricultural and industrial processing, typically in rural areas of 

developing countries (as opposed to modern bioenergy). 

Torrefied wood. Solid fuel, often in the form of pellets, 

produced by heating wood to 200–300°C in restricted air 

conditions. It has useful characteristics for a solid fuel including 

relatively high energy density, good grindability into pulverised 

fuel, and water repellency. 

Watt/Kilowatt/Megawatt/Gigawatt/Terawatt-hour. A Watt 

is a unit of power that measures the rate of energy conversion 

or transfer. A kilowatt is equal to one thousand (10 3 ) Watts; a 

megawatt to one million (10 6 ) Watts; and so on. A megawatt 

electrical (MW) is used to refer to electric power, whereas 

a megawatt thermal (MW th 

) refers to thermal/heat energy 

produced. Power is the rate at which energy is consumed or 

generated. For example, a lightbulb with a power rating of 100 

Watts (100 W) that is on for one hour consumes 100 Watt-hours 

(100 Wh) of energy, which equals 0.1 kilowatt-hour (kWh), or 

360 kilojoules (kJ). This same amount of energy would light 

a 100 W light bulb for one hour or a 25 W bulb for four hours. 

A kilowatt-hour is the amount of energy equivalent to steady 

power of 1 kW operating for one hour. 

G 


Notes 

ENERGY UNITS AND CONVERSION FACTORS 

Metric prefixes 

kilo (k) = 10 3 

mega (M) = 10 6 

giga (G) = 10 9 

Volume 

1 m 3 = 1,000 litres (l) 

1 U.S. gallon = 3.78 l 

1 Imperial gallon = 4.55 l 

tera (T) = 10 12 

peta (P) = 10 15 

exa (E) = 10 18 

Example: 

1 TJ = 1,000 GJ = 1,000,000 MJ = 1,000,000,000 kJ = 1,000,000,000,000 J = 1012 J 

1 J = 0.001 MJ = 0.000001 GJ = 0.000000001 TJ 

Energy unit conversion 

multiply by: GJ Toe MBtu MWh 

Toe = tonnes oil equivalent 

1 Mtoe = 41.9 PJ 

GJ 1 0.024 0.948 0.278 

Toe 41.868 1 39.683 11.630 

MBtu 1.055 0.025 1 0.293 

MWh 3.600 0.086 3.412 1 

Example: 1 MWh x 3.600 = 3.6 GJ 

Heat of combustion (high heat values) 

1 l gasoline = 47.0 MJ/kg = 35.2 MJ/l (density 0.75 kg/l) 

1 l ethanol = 29.7 MJ/kg = 23.4 MJ/l (density 0.79 kg/l) 

1 l diesel = 45.0 MJ/kg = 37.3 MJ/l (density 0.83 kg/l) 

1 l biodiesel = 40.0 MJ/kg = 35.2 MJ/l (density 0.88 kg/l) 

Solar thermal heat systems 

1 million m² = 0.7 GW th 

Used where solar thermal heat data have been converted 

from square metres (m²) into gigawatts thermal (GW th 

), by 

accepted convention. 

Note: 1) These values can vary with fuel and temperature. 

2) Around 1.5 litres of ethanol is required to equate 

to 1 litre of gasoline. 

132

LIST OF ABBREVIATIONS 

BIPV 

BNEF 

BOS 

BRICS 

CDM 

CHP 

CO 2 

CPV 

CSP 

DSM 

ECOWAS 

ECREEE 

Building-integrated solar photovoltaics 

Bloomberg New Energy Finance 

Balance of system 

Brazil, Russia, India, China, and South Africa 

Clean Development Mechanism 

Combined heat and power 

Carbon dioxide 

Concentrating solar photovoltaic 

Concentrating solar (thermal) power 

Demand-side management 

Economic Community of West African States 

Centre for Renewable Energy and Energy Efficiency 

EEG German Renewable Energy Sources Act – 

“Erneuerbare-Energien-Gesetz“ 

EMEC European Marine Energy Centre 

EPA U.S. Environmental Protection Agency 

ESCO Energy service company 

EU European Union (specifically the EU-27) 

EV Electric vehicle 

FIT Feed-in tariff 

FUNAE Mozambican Energy Fund – “Fundo de Energia“ 

GACC Global Alliance for Clean Cookstoves 

GEF Global Environment Facility 

GFR Global Futures Report 

GHG Greenhouse gas 

GHP Ground-source heat pump 

GSR Renewables Global Status Report 

GW/GWh Gigawatt/gigawatt-hour 

GW th Gigawatt-thermal 

IEA 

IFC 

IPCC 

IRENA 

kW/kWh 

LED 

LCOE 

m 2 

MENA 

MFI 

MSW 

mtoe 

MW/MWh 

MW th 

NGO 

NREAP 

OECD 

PPP 

PTC 

PV 

RPS 

SHS 

SPS 

SWH 

TW/TWh 

UNIDO 

Wp 

WTO 

International Energy Agency 

International Finance Corporation 

Intergovernmental Panel on Climate Change 

International Renewable Energy Agency 

Kilowatt/kilowatt-hour 

Light-emitting diode 

Levelised Cost of Energy 

Square metre 

Middle East and North Africa 

Microfinance institution 

Municipal solid waste 

Million tonnes of oil equivalent 

Megawatt/megawatt-hour 

Megawatt-thermal 

Non-governmental organisation 

National Renewable Energy Action Plan 

Organisation for Economic Co-operation 

and Development 

Public-private partnership 

Production Tax Credit 

Photovoltaics 

Renewable portfolio standard 

Solar home system (PV) 

Solar pico system (PV) 

Solar water heater/heating 

Terawatt/terawatt-hour 

United Nations Industrial Development Organization 

Watt-peak (nominal power) 

World Trade Organization 

PHOTO CREDITS 

Page 12 

Page 16 

Page 18 

Page 26 

Page 32 

Page 34 

Page 38 

Page 39 

Page 40 

Page 42 

Page 44 

Page 52 

Europe at night. World map and cloud textures 

courtesy of NASA. istockphoto 

CSP plant. Courtesy of BrightSource Energy 

CSP plant. © Geoeye / SPL / Cosmos 

Cornfields in Kansas, United States. Courtesy of NASA 

Advanced gasifier heat and power plant. 

Courtesy of Ralph Sims 

Palinpinon Geothermal Production Field. 

© Energy Development Corporation 

Hydropower dam. Shutterstock 

Alstom’s 1MW tidal stream device at EMEC site, 

Orkney, Scotland. © Alstom 

Rooftop solar PV. Courtesy of Emergent Energy 

Solar PV system, Shutterstock 

CSP Plant. Courtesy of Dii 

Offshore wind turbines. Courtesy of Vestas Wind Systems A/S 

Page 56 

Page 62 

Page 63 

Page 63 

Page 64 

Page 70 

Page 72 

Page 73 

Page 74 

Page 75 

Page 80 

Page 83 

Page 86 

Page 88 

Wind turbines. Courtesy of NASA 

Solar PV Plant. Courtesy of SMA Solar Technology AG 

Wind turbines. Courtesy of Vestas Wind Systems A/S 

Rapeseed fields with electrical pylons. fotoalia 

Solar PV plant. © Geoeye / SPL / Cosmos 

Pylon and power lines. Shutterstock 

Electric vehicle at charging point. 

Courtesy of Fraunhofer IFF 

Copenhagen, Denmark. fotoVoyager, istockphoto 

Rooftop solar water heaters. istockphoto 

Solar district heating system. Courtesy of Ramboll 

One of the three atolls of Tokelau. Courtesy of NASA 

Off-grid solar PV. Courtesy of Sandra Chavez 

Improved cookstove. Courtesy of Sandra Chavez 

Hydropower reservoir. Courtesy of NASA 

N 

COPYRIGHT & IMPRINT 

Renewable Energy Policy Network 

for the 21st Century 

REN21 Secretariat 

c/o UNEP 

15 rue de Milan 

75441 Paris, France 


ENDNOTES 01 GlObal MaRkET aNd INduSTRy OvERvIEw 

Global Market and Industry Overview 

1 Estimated shares based on the following sources: total 2010 final 

energy demand (estimated at 8,076 Mtoe) is based on 7,881 Mtoe 

for 2010 from International Energy Agency (IEA), World Energy 

Statistics 2012 (Paris: OECD/IEA, 2012) and escalated by the 

2.48% increase in global primary energy demand from 2010 to 

2011, derived from BP, Statistical Review of World Energy 2012 

(London: 2012). The figure differs conceptually from estimates in 

previous editions of the GSR in that total final consumption now 

excludes non-energy use of fossil fuels. The total final energy 

demand is about 9.2% smaller than total final consumption, thus 

making the share of renewables (and nuclear power) proportionately 

larger. Traditional biomass use in 2010 was estimated at 751 

Mtoe (31.4 EJ), and this value was used for 2011 as well, from 

IEA, World Energy Outlook 2012 (Paris: 2012), p. 216. In 2011, the 

Intergovernmental Panel on Climate Change (IPCC) indicated a 

higher range for traditional biomass of 37–43 EJ, and a proportionately 

lower figure for modern biomass use, per O. Edenhofer 

et al., eds. IPCC Special Report on Renewable Energy Resources 

and Climate Change Mitigation, prepared by Working Group III 

of the Intergovernmental Panel on Climate Change (Cambridge, 

U.K. and New York: Cambridge University Press, 2011), Table 

2.1. Bio-heat energy values for 2011 (industrial, residential, 

commercial, and other uses, including heat from heat plants) was 

estimated at 305 Mtoe (12.7 EJ), based on preliminary estimates 

from IEA, Medium-Term Renewable Energy Market Report 2013 

(Paris: OECD/IEA, forthcoming 2013). Bio-power generation was 

estimated at 28 Mtoe (324 TWh), based on 74 GW of capacity 

in 2011 (see Reference Table R1) and a capacity factor of 50%, 

which was based on the average capacity factors (CF) of biomass 

generating plants in the United States (49.3% CF based on data 

from U.S. Energy Information Administration (EIA), Electric Power 

Annual 2010 (Washington, DC: 2011), Table 1.2, (Existing Capacity 

by Energy Source, 2010)) and in the European Union (52% CF 

based on data in Energy Research Centre of the Netherlands/ 

European Environment Agency, Renewable Energy Projections as 

Published in the National Renewable Energy Action Plans of the 

European Member States (Petten, The Netherlands: 28 November 

2011)). Applying a five-year growth rate to the 2010 value found in 

IEA, World Energy Statistics 2012, op. cit. this note, would yield a 

lower estimate of 293 TWh. Other renewable electricity generation 

estimates include: wind power was 45 Mtoe (522 TWh), based 

on global capacity of 238.5 GW using a CF of 25%; solar PV was 

estimated at 6.7 Mtoe (78 TWh), based on 70.8 GW capacity and 

average CF of 12.5%; concentrated solar thermal power (CSP) 

was 0.3 Mtoe (4 TWh), based on 1.6 GW capacity and CF of 25%; 

and ocean power was 0.1 Mtoe (1.2 TWh), based on 527 MW 

capacity and CF of 25%. (For 2011 year-end operating capacities 

for wind, solar PV, CSP, and ocean power, see Reference Table R1; 

for capacity factors see Table 2 on Status of Renewable Energy 

Technologies: Characteristics and Costs.) Geothermal was 6.0 

Mtoe (70 TWh), based on estimated capacity of 11.35 GW from 

global inventory of geothermal power plants by Geothermal Energy 

Association (GEA) (unpublished database), per Benjamin Matek, 

GEA, personal communication with REN21, May 2013. Generation 

based on the global average capacity factor for geothermal 

generating capacity in 2010 (70.44%), derived from 2010 global 

capacity (10,898 MW) and 2010 global generation (67,246 GWh), 

see Ruggero Bertani, “Geothermal Power Generation in the 

World, 2005–2010 Update Report,” Geothermics, vol. 41 (2012), 

pp. 1–29; hydropower was assumed to contribute 301 Mtoe 

(3,498 TWh), per BP, op. cit. this note. Solar thermal hot water/ 

heat output in 2011 was estimated at 17.8 Mtoe (0.74 EJ), based 

on Werner Weiss and Franz Mauthner, Solar Heat Worldwide: 

Markets and Contribution to the Energy Supply 2011, Edition 2013 

(Gleisdorf: Austria: IEA Solar Heating and Cooling Programme, 

May 2013). Adjusted upwards by REN21 to account for 100% of 

the world market, as the Weiss and Mauthner report covers an 

estimated 95%. Geothermal heat was estimated at 11.7 Mtoe 

(0.49 EJ), assuming 57.8 GW th 

of capacity yielding 489 PJ of heat, 

based on estimated growth rates and 2010 capacity and output 

figures from John W. Lund, Derek H. Freeston, and Tonya L. 

Boyd, “Direct Utilization of Geothermal Energy: 2010 Worldwide 

Review,” in Proceedings of the World Geothermal Congress 2010, 

Bali, Indonesia, 25–29 April 2010; updates from John Lund, 

Geo-Heat Center, Oregon Institute of Technology, personal 

communication with REN21, March, April, and June 2011. For 

liquid biofuels, ethanol use was estimated at 44.6 Mtoe (1.87 EJ) 

and biodiesel use at 18.5 Mtoe (0.77 EJ), based on 84.2 billion 

litres and 22.4 billion litres, respectively, from F.O. Licht, “Fuel 

Ethanol: World Production, by Country (1000 cubic metres),” 

2013, and from F.O. Licht, “Biodiesel: World Production, by 

Country (1000 T),” 2013; and conversion factors from Oak Ridge 

National Laboratory, found at https://bioenergy.ornl.gov/papers/ 

misc/energy_conv.html. Nuclear power generation was assumed 

to contribute 228 Mtoe (2,649 TWh) of final energy, from BP, op. 

cit. this note. 

2 Ibid. Figure 1 based on sources in Endnote 1. 

3 Based on data found in REN21, Renewables Global Status Report 

(Paris: various years), and in IEA, World Energy Outlook 2012, op. 

cit. note 1. 

4 Based on 9,443 MW in operation at the end of 2007, from 

European Photovoltaic Industry Association (EPIA), Market Report 

2012 (Brussels: February 2013), and on 100 GW at the end of 

2012. See relevant section and endnotes for more details regarding 

2012 data and sources. 

5 CSP based on 430 MW in operation at the end of 2007, from Fred 

Morse, Abengoa Solar, personal communication with REN21, 4 

May 2012, and from Red Eléctrica de España (REE), “Potencia 

Instalada Peninsular (MW),” https://www.ree.es/ingles/sistema_ 

electrico/series_estadisticas.asp, updated 29 April 2013, and 

on about 2,550 MW at the end of 2012. Wind power based on 

24.9% from Navigant’s BTM Consult, International Wind Energy 

Development: World Market Update 2012 (Copenhagen: March 

2013), and data for 2007 and 2012 from Global Wind Energy 

Council (GWEC), Global Wind Report – Annual Market Update 

2012 (Brussels: April 2013). See relevant section and endnotes 

in Market and Industry Trends by Technology for more details 

regarding 2012 data and sources. 

6 Hydropower based on an estimated 840–870 MW in operation 

at the end of 2007 from REN21, Renewables Global Status Report 

2009 Update (Paris: 2009), and on 990 GW at the end of 2012. 

The GSR 2009 puts total hydropower capacity in 2008 at 945 

GW, with 31–38 GW added during 2008, meaning an estimated 

914–907 GW at the end of 2007; however, this includes pumped 

storage capacity, for which an adjustment has been made. 

Hydropower 3% average annual growth also from Observ’ER, 

“Electricity Production in the World: General Forecasts,” Chapter 

1 in Worldwide Electricity Production from Renewable Energy 

Sources: Stats and Figures Series, 2012 edition (Paris: 2012). 

Geothermal based on 9.6 GW in operation at the end of 2007, from 

REN21, op. cit. this note, and 11.65 GW at the end of 2012 based 

on global inventory of geothermal power plants compiled by GEA, 

op. cit. note 1. See relevant sections and endnotes in Market and 

Industry Trends by Technology for more details regarding 2012 

data and sources. Figure 2 based on data and sources provided 

in Endnotes 4–6 and 8 in this section, and from F.O. Licht, op. cit. 

note 1, both references. 

7 Figure of 7.8% average annual growth is based on global biopower 

capacity for the period end-2005 through 2010, the latest 

data available from U.S. EIA, “International Energy Statistics,” 

www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm, viewed 23 May 

2013. 

8 Glazed solar water heaters based on 123.8 GW th 

capacity in operation 

at the end of 2007 and an estimated 255 GW th 

at the end of 

2012, from IEA, SHC Solar Heat Worldwide Reports (Gleisdorf, 

Austria: 2005–2013 editions), revised figures based on long-term 

recordings from AEE – Institute for Sustainable Technologies 

(AEE-INTEC), supplied by Franz Mauthner, 18 April 2013, and 

adjusted by REN21 from 95% of world market to 100%; groundsource 

heat pumps from Lund, Freeston, and Boyd, op. cit. note 1. 

See relevant sections and endnotes in Market and Industry Trends 

by Technology for more details regarding 2012 data and sources, 

particularly for bio-heat. 

9 Based on “World Pellets Map,” Bioenergy International Magazine, 

Stockholm, 2013; M. Cocchi et al., Global Wood Pellet Industry and 

Market Study (Paris: IEA Bioenergy Task 40, 2011); Eurostat database, 

Data explorer - EU27 trade since 1995 by CN8 (Brussels: 

2013), at http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database; 

C.S. Goh et al., “Wood pellet market and 

trade: a global perspective,” Biofuels, Bioproducts and Biorefining, 

vol. 7 (2013), pp. 24–42; P. Lamers et al., “Developments in 

international solid biofuel trade – an analysis of volumes, policies, 

and market factors,” Renewable & Sustainable Energy Reviews, 

vol. 16 (2012), pp. 3176–99. 

10 F.O. Licht, op. cit. note 1, both references. 

11 See, for example, MERCOM Capital Group, “With Chronic Power 

Shortages and 400 Million without Power, India Losing Sight of Big 

Picture with Solar Anti-Dumping Case,” Market Intelligence Report 

134

– Solar, 4 March 2013; MERCOM Capital Group, “Global Solar 

Forecast – Looking at Another Year of Steady Growth,” Market 

Intelligence Report – Solar, 11 March 2013; Ucilia Wang, “Here 

Comes Another Solar Trade Dispute,” RenewableEnergyWorld. 

com, 7 February 2013; “China Launches WTO Challenge to U.S. 

Anti-Subsidy Tariffs,” Reuters, 17 September 2012; Doug Palmer, 

“U.S. Slaps Duties on China Wind Towers, High-Level Talks Begin,” 

Reuters, 19 December 2012. For details and references regarding 

challenges and impacts on individual industries, see Market and 

Industry Trends by Technology section. 

12 See, for example, Sarasin, Working Towards a Cleaner and Smarter 

Power Supply: Prospects for Renewables in the Energy Revolution 

(Basel, Switzerland: December 2012), Bärbel Epp, “Solar Industry 

in Upheaval,” Sun & Wind Energy, December 2012, pp. 28–39; 

Ucilia Wang, “No End In Sight? The Struggle of Solar Equipment 

Makers,” RenewableEnergyWorld.com, 30 November 2012; 

Navigant’s BTM Consult, op. cit. note 5; Ernst & Young, Renewable 

Energy Country Attractiveness Indices, 2012, at www.ey.com. 

13 See, for example, Vince Font, “A Look Back at Solar Energy in 

2012,” RenewableEnergyWorld.com, 19 December 2012; Jeremy 

Bowden, “PV Policy and Markets – Impact of US Tariffs on LCOE,” 

Renewable Energy World, November–December 2012, p. 7; James 

Montgomery, “Third-Party Residential Solar Surging in California; 

Nearly a Billion-Dollar Business,” RenewableEnergyWorld.com, 

15 February 2013; Ryan Hubbell et al., Renewable Energy Finance 

Tracking Initiative (REFTI) Solar Tracking Analysis (Golden, CO: 

National Renewable Energy Laboratory (NREL), U.S. Department 

of Energy, September 2012), p. 18; slowing growth in established 

markets also from Navigant’s BTM Consult, op. cit. note 5; information 

also from Scott Sklar, Stella Group, personal communication 

with REN21, 20 February 2013. 

14 Louise Downing, “Renewable Energy Investment Falls 20 Percent 

as Wind Financings Decline,” RenewableEnergyWorld.com, 9 

October 2012; Frankfurt School – UNEP Centre for Climate & 

Sustainable Energy Finance (FS–UNEP) and Bloomberg New 

Energy Finance (BNEF), Global Trends in Renewable Energy 

Investment 2013 (Frankfurt: 2013). See also Sections 2, 3, and 5 

in this report. Sidebar 2 is based on the following sources: solar 

conditions in Southern and North Africa, potential for geothermal 

energy, and expansion of geothermal from Ben Block, “African 

Renewable Energy Gains Attention,” Worldwatch Institute, at 

www.worldwatch.org/node/5884; potential for wind energy from 

Catherine Dominguez, “African region’s wind energy resource 

better compared with other countries,” EcoSeed.org, 6 November 

2012; 7% of continent’s hydropower potential and hydropower 

capacity expansion from Richard M. Taylor, International 

Hydropower Association, “How to Make the Grand Inga 

Hydropower Project Happen for Africa,” PowerPoint presentation 

at WEC International Forum on the Grand Inga Projects, March 

2007; future capacity demand and required investment from 

Nedbank Capital, African Renewable Energy Review, January– 

February 2013 (Johannesburg: 2013); 10 GW by 2020 and 

countries with policies in place (including targets) from REN21, 

Renewables 2012 Global Status Report (Paris: 2012); domestic 

solar water heating from Werner Weiss and Franz Mauthner, Solar 

Heat Worldwide: Markets and Contribution to the Energy Supply 

2010 (Paris: 2012); biofuels production and foreign investment 

from Pádraig Carmody, “The New Scramble for Africa,” The World 

Financial Review, 19 January 2012, and from Damian Carrington 

and Stefano Valentino, “Biofuels Boom in Africa as British Firms 

Lead Rush on Land for Plantations,” The Guardian (U.K.), 31 May 

2011; local manufacturing from African Development Bank, Clean 

Energy Development in Egypt, 2012 (Tunis-Belvedere: 2012), and 

from REN21 knowledge of local markets; Chinese investment 

from WWF, China and Renewable Energy in Africa: Opportunities 

for Norway? (Oslo: 2012); renewable energy investment in Africa 

compared to other regions from FS-UNEP and BNEF, Global 

Trends in Renewable Energy Investment 2012 (Paris: 2012); 

international perceptions from Simon Allison, “Africa’s Economic 

Growth Miracle: ‘It’s the Real Thing’,” The Daily Maverick (South 

Africa), 9 November 2012, at www.dailymaverick.co.za. 

15 For example, the Al-Khafji solar desalination project planned in 

Saudi Arabia, near the Kuwaiti border, will be the first large-scale 

solar power seawater reverse osmosis plant in the world, and 

several more such plants are planned, per Robin Yapp, “Solar 

Energy and Water: Solar Powering Desalination,” Renewable 

Energy World, November–December 2012, p. 12; “The Desert 

Kingdom: Desalination from Oil Power to Solar Power?” Saudi 

Gazette, 15 April 2013; Louise Downing, “Remote Miners Investing 

in Renewables to Power Operations,” RenewableEnergyWorld. 

com, 4 December 2012. 

16 See Reference Table R1 and related endnote for details and 

references. 

17 Based on total additions of 115 GW, with about 45 GW from wind, 

30 GW from hydropower, and more than 29.4 GW from solar PV. 

For details and references see Reference Table R1 and related 

endnote. 

18 Growing share based on data from REN21, Renewables Global 

Status Report, previous editions, and from U.S. EIA, IEA, and 

BNEF, provided in FS–UNEP and BNEF, 2013, op. cit. note 14. 

Estimate for net additions and renewable share based on a total of 

115 GW of renewable capacity added, as noted in this report; on 

3.7 GW of net nuclear power capacity added, from International 

Atomic Energy Agency, cited in “Nuclear Power Capacity Grew 

Again in 2012: IAEA,” Agence France Presse, 5 March 2013; 

on 152 GW coal-fired capacity installed and just over half was 

additional, and 72 GW natural gas-fired capacity installed and a 

little more than one-third was additional, for a total of 109 GW of 

net capacity additions from fossil fuels, from FS–UNEP and BNEF, 

2013, op. cit. note 14. Based on these data, total global net capacity 

additions in 2012 were estimated to be about 228 GW, putting 

the renewable share at just over 50%. 

19 Renewable share of total global electric generating capacity 

is based on renewable total of 1,470 GW and on total global 

electric capacity in the range of 5,640 GW. Estimated total world 

capacity for end-2012 is based on 2010 total of 5,183 GW, from 

IEA, World Energy Outlook 2012, op. cit. note 1, p. 554; on about 

105 GW of renewables added in 2011, from REN21, op. cit. note 

14, and adjusted data for 2011; on 132 GW net additions of fossil 

fuel-fired capacity in 2011, from Angus McCrone, BNEF, personal 

communication with REN21, 28 May 2013; on a net reduction in 

nuclear power capacity of 7 GW in 2011, from “Nuclear Power 

Capacity Grew...,” op. cit. note 18; and on a net total of 228 GW 

added from all sources in 2012. Share of generation based on the 

following: Total global electricity generation in 2012 is estimated 

at 22,389 TWh, based on 22,018 TWh in 2011 from BP, op. 

cit. note 1, and an estimated 1.68% growth in global electricity 

generation for 2012. The growth rate is based on the total change 

in generation for the following countries (which account for more 

than 60% of 2011 generation): United States (-1.13% change in 

annual generation), EU-27 (-2.41% for January through September 

only), Russia (+1.30%), India (+4.65%), China (+5.50%), and Brazil 

(+4.06%). Sources for 2010 and 2011 electricity generation are: 

U.S. EIA, Monthly Energy Review, April 2013, Table 7.2a (Electricity 

Net Generation); European Commission, Eurostat database, 

http://epp.eurostat.ec.europa.eu; System Operator of the Unified 

Power System of Russia, at www.so-ups.ru; Government of 

India, Ministry of Power, Central Electricity Authority, “Monthly 

Generation Report,” www.cea.nic.in/monthly_gen.html; China 

Electricity Council (CEC), “CEC Released the Country’s Electricity 

Industry in 2012 to Run Profiles,” 18 January 2013, at http://tj.cec. 

org.cn/fenxiyuce/yunxingfenxi/yuedufenxi/2013-01-18/96374. 

html; National Operator of the Electrical System of Brazil (ONS), 

“Geração de Energia,” at www.ons.org.br/historico/geracao_energia.aspx. 

Hydropower generation in 2012 is estimated at 3,700 

TWh, based on reported 2011 global generation and estimation 

that output increased by over 6% in 2012. The increase in generation 

over 2011 is based on reported changes in countries that 

together accounted for over 70% of global hydropower generation 

in 2011: United States (-14.9% in annual output), Canada (+1.0%), 

EU-27 (+5.4% for January through September), Norway (+17.1%), 

Brazil (-2.0%), Russia (+1.1%), India (-12.1% for facilities larger 

than 25 MW), and China (+30.4%). The combined hydropower 

output of these countries was up by about 6.8% relative to 2011. 

Total 2011 hydro generation was 3,498 TWh per BP, op. cit. note 1, 

and 3,467 TWh per International Journal on Hydropower & Dams 

(IJHD), Hydropower & Dams World Atlas 2012 (Wallington, Surrey, 

U.K.: 2012); 2011 and 2012 generation by country: United States 

from U.S. EIA, op. cit. this note; Canada from Statistics Canada, 

http://www5.statcan.gc.ca; EU-27 from European Commission, 

op. cit. this note; Norway from Statistics Norway, www.ssb. 

no; Brazil from ONS, op. cit. this note; Ministry of Energy of the 

Russian Federation, http://minenergo.gov.ru; Government of India, 

op. cit. this note; CEC, op. cit. this note. Non-hydro renewable 

generation of 1,159 TWh was based on 2012 year-end generating 

capacities shown in Reference Table R1 and representative 

capacity factors in note 1, or other specific estimates as detailed 

by technology in Section 2. Figure 3 based on sources in this 

endnote. 

20 Figure of 30% from wind in Denmark based on preliminary 2012 

01 



data from Danish Energy Agency (Energi Styrelsen), “Elforsyning,” 

(Electricity supply), Månedsstatistik (Monthly Statistics), January 

2013, at www.ens.dk; solar PV met an estimated 5.6% of national 

demand in Italy from Terna, “Early Data on 2012 Electricity 

Demand: 325.3 Billion kWh The Demand, -2.8% Compared to 

2011,” press release (Rome: 9 January 2013). 

21 Prices are being driven down via the merit order effect and, 

in some cases, this is increasing financial pressure on some 

conventional generators, per “Energy Firm RWE Gives Up on 

Renewables Target,” ENDSEurope.com, 5 March 2013; Rachel 

Morison and Julia Mengewein, “Wind Blows German Power Swings 

to Five-Year High,” RenewableEnergyWorld.com, 22 February 

2013; wind energy undercutting power prices already driven down 

by lows in natural gas, and below zero in several U.S. states, from 

Julie Johnsson and Naureen S. Malik, “Nuclear Industry Withers in 

U.S. as Wind Pummels Prices,” Bloomberg.com, 11 March 2013; 

Giles Parkinson, “Wind, Solar Force Energy Price Cuts in South 

Australia,” 3 October 2012, at http://reneweconomy.com.au. 

22 FS–UNEP/BNEF, 2013, op. cit. note 14. According to BNEF, 

the average cost per MWh of new gas- and coal-fired capacity 

increased by some 40% worldwide between the second quarter 

of 2009 and the first quarter of 2013, reflecting higher bills for 

capital equipment. 

23 For example, a Citi Research report found that solar is cheaper 

than domestic electricity tariffs in many parts of the world, that 

wind is competitive with lower wholesale prices in a growing 

number of regions, and that renewables can compete against 

combined-cycle gas turbines in regions with higher-priced gas, 

per Jason Channell, Timothy Lam, and Shahriar Pourreza, Shale 

& Renewables: A Symbiotic Relationship (London: Citi Research, 

a division of Citigroup Global Markets Inc., September 2012); 

a BNEF study found that the levelised cost of electricity from 

best-in-class wind sites is lower than that from the cheapest 

natural gas-fired plants and cheaper than the lowest-cost new 

fossil fuel plants in Australia, per BNEF, “Australia LCOE update: 

Wind Cheaper than Coal and Gas,” Asia & Oceania Clean Energy 

Research Note, 31 January 2013; electricity from wind can 

be supplied below the cost of coal-fired generation in parts of 

India according to Greenko Group Plc., cited in Natalie Obiko 

Pearson, “In Parts of India, Wind Energy Proving Cheaper Than 

Coal,” RenewableEnergyWorld.com, 18 July 2012; in India, peak 

demand prices on the spot market have reached Rs. 12/kWh; by 

comparison, the LCOE of most solar plants under construction as 

of early 2013 was an estimated Rs. 8–9/kWh, per Sourabh Sen, 

“Assessing Risk and Cost in India: Solar’s Trajectory Compared 

to Coal,” RenewableEnergyWorld.com, 17 April 2013; solar PV 

is cost-competitive in remote rural and island communities that 

depend on diesel-fired generation, and has achieved grid parity in 

some locations earlier than expected, per Sarasin, op. cit. note 12, 

p. 9; solar PV is cheaper than grid power for commercial consumers 

in Maharashtra, Delhi, and Kerala in India, even without a 

subsidy, per Bridge to India, India Solar Compass, April 2013, p. 

26; analysis from the International Renewable Energy Agency 

(IRENA) suggests that, in most OECD countries with good wind 

resources, the most competitive onshore wind projects are now 

cost-competitive with fossil fuels and that price reductions mean 

this is increasingly true, per IRENA, Renewable Power Generation 

Costs in 2012: An Overview (Abu Dhabi: January 2013); and 

according to the IEA, in some countries with good wind resources, 

including Brazil and Turkey, wind power projects are successfully 

competing without subsidies against fossil fuel-based power 

projects in wholesale electricity markets, from IEA, Tracking Clean 

Energy Progress 2013 (Paris: OECD/IEA, 2013). Note that offshore 

wind levelised costs increased between the second quarter of 

2009 and the first quarter of 2013, as project developers moved 

further from shore and into deeper waters, and some CSP and 

geothermal power technologies also saw cost increases during 

this period, from FS–UNEP and BNEF, 2013, op. cit. note 14. 

24 Rankings were determined by gathering data for the world’s top 

countries for hydropower, wind, solar, biomass, and geothermal 

power capacity. China based on 228.6 GW hydropower (not 

including pure pumped storage capacity) from CEC, op. cit. note 

19, and from China National Renewable Energy Center (CNREC), 

“China Renewables Utilization Data 2012,” March 2013, at www. 

cnrec.org.cn/english/publication/2013-03-02-371.html; 75,324 

MW wind from Chinese Wind Energy Association (CWEA), with 

data provided by Shi Pengfei, personal communication with 

REN21, 14 March 2013, and from GWEC, op. cit. note 5; 7,000 

MW of solar PV from IEA Photovoltaic Power Systems Programme 

(IEA-PVPS), PVPS Report, A Snapshot of Global PV 1992–2012 

(Paris: 2013); 8,000 MW of bio-power from CNREC, op. cit. this 

note; 26.6 MW geothermal from GEA, op. cit. note 1; and small 

amounts of CSP (pilot projects) and ocean energy capacity. 

United States based on 78.3 GW hydropower from EIA, Electric 

Power Annual 2010, op. cit. note 1, Table 4.3 (Existing Capacity 

by Energy Source); projected net additions in 2012 of 99 MW 

from idem, Table 4.5 (Planned Generating Capacity Changes 

by Energy Source, 2012–2016); 60,007 MW of wind from 

American Wind Energy Association (AWEA), AWEA U.S. Wind 

Industry Annual Market Report, Year Ending 2012 (Washington, 

DC: April 2013), Executive Summary; 7,219 MW of solar PV from 

GTM Research and U.S. Solar Energy Industries Association 

(SEIA), U.S. Solar Market Insight Report, 2012 Year in Review 

(Washington, DC: 2013), p. 21; 15 GW bio-power from Federal 

Energy Regulatory Commission (FERC), Office of Energy Projects, 

Energy Infrastructure Update for December 2012 (Washington, 

DC: 2012); 3,386 MW of geothermal power from GEA, op. cit. 

note 1; 507 MW of CSP from SEIA, “Utility-scale Solar Projects 

in the United States Operating, Under Construction, or Under 

Development,” www.seia.org/sites/default/files/resources/ 

Major%20Solar%20Projects%20List%202.11.13.pdf, updated 

11 February 2013, and from Fred Morse, Abengoa Solar, 

personal communication with REN21, 13 March 2013. Brazil 

based on 84,000 MW of hydropower, 7.6 MW of solar PV, and 

9.66 GW of bio-power from ANEEL – National Electric Energy 

Agency, “Generation Data Bank,” February 2013, at www.aneel. 

gov.br/aplicacoes/capacidadebrasil/capacidadebrasil.cfm (in 

Portuguese); and 2,508 MW of wind from GWEC, op. cit. note 

5. Canada based on 77.1 GW of hydropower from the following: 

existing capacity of 75.08 GW at the end of 2010 from Statistics 

Canada, Table 127-0009, “Installed generating capacity, by 

class of electricity producer,” at http://www5.statcan.gc.ca; plus 

capacity additions in 2011 of 1.34 GW from Marie-Anne Sauvé, 

Hydro Québec, and Domenic Marinelli, Manitoba Hydro, personal 

communications via International Hydropower Association (IHA), 

April 2012; plus capacity additions in 2012 of 0.68 GW from 

IHA, personal communication with REN21, March 2013; also 

on 6,200 MW wind from GWEC, op. cit. note 5; 765 MW solar 

PV from IEA-PVPS, op. cit. this note; 1,821 MW bio-power from 

preliminary estimates from IEA, Medium-Term..., op. cit. note 1; 

and 20 MW of ocean from IEA Implementing Agreement on Ocean 

Energy Systems (IEA-OES), “Ocean Energy in the World,” www. 

ocean-energy-systems.org/ocean_energy_in_the_world/, and 

from IEA-OES, Annual Report 2012 (Lisbon: 2012), Table 6.1. 

Germany based on 4.4 GW of hydropower, 31,315 MW of wind, 

and 7,647 MW of bio-power from German Federal Ministry for the 

Environment, Nature Conservation and Nuclear Safety (BMU), 

“Renewable Energy Sources 2012,” data from Working Group on 

Renewable Energy-Statistics (AGEE-Stat), provisional data (Berlin: 

28 February 2013), p. 18; 32,411 MW of solar PV from EPIA, Global 

Market Outlook for Photovoltaics 2013–2017 (Brussels: May 2013) 

and from IEA-PVPS, op. cit. this note; and 12.75 MW geothermal 

power from GEA, op. cit. note 1. 

25 China, United States, and Germany from ibid, all references. 

Spain based on 17,057 MW of hydropower from REE, op. cit. note 

5; 22,796 MW of wind from GWEC, op. cit. note 5; 5,100 MW solar 

PV from IEA-PVPS, op. cit. note 24; 952 MW bio-power from REE, 

Boletin Mensual, No. 72, December 2012; and 1,950 MW CSP 

from Comisión Nacional de Energía (CNE), provided by Eduardo 

Garcia Iglesias, Protermosolar, Madrid, personal communication 

with REN21, 16 May 2013, and from REE, Boletín Mensual, op. 

cit. this note. Italy based on 18.2 GW hydropower and 3,800 MW 

of bio-power from Gestore Servizi Energetici (GSE), “Impianti a 

fonti rinnovaili in Italia: Prima stima 2012,” 28 February 2013; 

8,144 MW of wind from GWEC, op. cit. note 5; 16,420 MW of solar 

PV from GSE, “Rapporto Statistico 2012, Solare Fotovoltaico,” 

8 May 2013, p. 8, at www.gse.it; 880 MW of geothermal power 

from GEA, op. cit. note 1; and 5 MW (demonstration) of CSP from 

EurObserv’ER, The State of Renewable Energies in Europe, 12th 

EurObserv’ER Report (Paris: 2012), p. 88. India based on 42.8 

GW of hydropower from Indian Ministry of New and Renewable 

Energy (MNRE), “Achievements,” www.mnre.gov.in/missionand-vision-2/achievements/, 

28 February 2013, from MNRE, 

Annual Report 2012–2013 (Delhi: 2013), and from Government of 

India, Ministry of Power, Central Electricity Authority, “Installed 

Capacity (in MW) of Power Utilities in the States/UTS Located in 

Northern Region Including Allocated Shares in Joint & Central 

Sector Utilities,” www.cea.nic.in/reports/monthly/inst_capacity/ 

jan13.pdf, viewed 11 April 2013; 18,421 MW of wind from GWEC, 

op. cit. note 5; 1,205 MW of solar PV from EPIA, op. cit. note 24, 

and from IEA-PVPS, op. cit. note 24; about 4 GW of bio-power 

136

from MNRE, “Achievements,” op. cit. this note. Figure 4 based on 

sources in this note and on the following sources for EU-27 and 

BRICS: EU-27 based on 120.5 GW hydropower in 2011 (although 

this includes some mixed pumped storage plants for Austria and 

Spain), from IJHD, op. cit. note 19, and adjusted to 119 GW to 

account for 1.5 GW of pure pumped storage capacity in Spain; 

106,041 MW of wind from European Wind Energy Association 

(EWEA), Wind in Power: 2012 European Statistics (Brussels: 

February 2013); 61.9 GW of solar PV from Gaetan Masson, EPIA 

and IEA-PVPS, personal communication with REN21, April 2013; 

31.4 GW of bio-power, from REN21, op. cit. note 14; from BMU, op. 

cit. note 24; from GSE, “Impianti a fonti rinnovabili in Italia...,” op. 

cit. this note; from U.K. Government, Department of Energy and 

Climate Change (DECC), “Energy trends section 6: renewables,” 

and “Renewable electricity capacity and generation (ET6.1),” 9 

May 2013, at https://www.gov.uk/government/publications/renewables-section-6-energy-trends; 

Électricité Réseau Distribution 

France (ERDF), “Installations de production raccordées au réseau 

géré par ERDF à fin décembre 2012,” www.erdfdistribution.fr/ 

medias/Donnees_prod/parc_prod_decembre_2012.pdf; from 

REE, The Spanish Electricity System: Preliminary Report 2012 

(Madrid: 2012); from Directorate General for Energy and Geology 

(DGEG), Portugal, 2013, www.precoscombustiveis.dgeg.pt. (Note 

that IEA Energy Statistics online data services, 2013, were used to 

check against OECD country data from other references used for 

bio-power capacity, and 2011 capacity data for Austria, Belgium, 

Canada, Denmark, the Netherlands, and Sweden were assumed 

to have increased by 2%); 934 MW of geothermal from GEA, op. 

cit. note 1; 1,950 MW of CSP from Spain’s CNE, op. cit. this note, 

and from REE, Boletín Mensual, op. cit. this note; and 241 MW of 

ocean energy from IEA-OES, Annual Report 2011 (Lisbon: OES 

Secretary, 2011), Table 6.1, p. 122. In addition to references for 

Brazil, China, and India, BRICS from the following: Russia based 

on 46 GW of hydropower from System Operator of the Unified 

Energy System of Russia, “Operational Data for December 2012,” 

www.so-ups.ru/fileadmin/files/company/reports/ups-review/2013/ 

ups_review_jan13.pdf; 15 MW wind from EWEA, op. cit. this 

note; 1.5 GW bio-power from preliminary estimates from IEA, 

Medium-Term..., op. cit. note 1; 147 MW geothermal power from 

GEA, op. cit. note 1; and a small amount of ocean energy capacity. 

South Africa based on 670 MW of hydropower (not including 

pumped storage), from Hydro4Africa, “African Hydropower 

Database—South Africa,” http://hydro4africa.net/HP_database/ 

country.php?country=South%20Africa, viewed 21 May 2013; 10 

MW of wind from GWEC, op. cit. note 5, p. 54; 30 MW solar PV 

from EScience Associates, Urban-Econ Development Economists, 

and Chris Ahlfeldt, The Localisation Potential of Photovoltaics (PV) 

and a Strategy to Support Large Scale Roll-Out in South Africa, 

Integrated Report, Draft Final v1.2, prepared for the South African 

Department of Trade and Industry, March 2013, p. x, at www. 

sapvia.co.za; 25 MW bio-power based on IEA, Medium-Term..., op. 

cit. note 1. 

26 See previous endnotes for Brazil and Canada details and sources. 

France based on 7,564 MW of wind from GWEC, op. cit. note 5; 

4,003 MW solar PV from Commissariat Général au Développement 

Durable, Ministère de l’Écologie, du Développement durable et de 

l’Énergie, “Chiffres et statistiques,” No. 396, February 2013, at 

www.statistiques.developpement-durable.gouv.fr; 1,305 MW biopower 

based on REN21, op. cit. note 14, on IEA Energy Statistics 

online data services, 2013, on EurObserv’ER, op. cit. note 25, and 

on additions of 0.3 GW in 2012 from ERDF, op. cit. note 25, and 

1.574 GW from preliminary estimates from IEA, Medium-Term..., 

op. cit. note 1; 240 MW of ocean energy from IEA-OES, op. cit. 

note 25, Table 6.1, p. 122. Japan based on 2,614 MW of wind 

from GWEC, op. cit. note 5; 6,632 MW of solar PV from IEA-PVPS, 

provided by Gaetan Masson, EPIA and IEA-PVPS, personal communication 

with REN21, 15 May 2013; 3.3 GW of bio-power from 

Institute for Sustainable Energy Policies (ISEP), Renewables 2013 

Japan Status Report (Tokyo: 2013); 535 MW of geothermal from 

GEA, op. cit. note 1. United Kingdom based on 8,445 MW wind 

from GWEC, op. cit. note 5; 1,830 MW from IEA-PVPS, op. cit. note 

24; and from EPIA, op. cit. note 24; 2,651 MW bio-power from 

DECC, op. cit. note 25; 9 MW ocean from renewableUK, “Wave & 

Tidal Energy,” at www.renewableuk.com/en/renewable-energy/ 

wave-and-tidal/index.cfm. Sweden from 3,745 MW wind from 

GWEC, op. cit. note 5; 24 MW solar PV from IEA-PVPS, op. cit. note 

24; 3,992 MW bio-power from preliminary estimates from IEA, 

Medium-Term..., op. cit. note 1. 

27 Based on data and sources in previous endnotes in this section 

and population data for 2011 from World Bank, “Population, 

Total,” http://data.worldbank.org/indicator/SP.POP.TOTL. For 

details, see Reference Table R2. 

28 Figure of 84% is based on total capacity among the top 12 

countries of 401 GW, and 64% is based on total capacity among 

the top five of 308 GW. Data derived from previous endnotes in 

this section. 

29 Hydropower capacity was 228.6 GW (not including 20.3 GW 

of pure pumped storage), from CEC, op. cit. note 19; 75.3 GW 

of wind power capacity from GWEC, op. cit. note 5, and from 

CWEA, op. cit. note 24; 7 GW of solar PV from Gaetan Masson, 

EPIA, personal communication with REN21, 12 February and 21 

March 2013; 7 GW also from IEA-PVPS, op. cit. note 24; 8 GW 

bio-power capacity and small amounts of geothermal and ocean 

energy capacity from Wang Wei, CNREC, “China renewables and 

non-fossil energy utilization,” www.cnrec.org/cn/english/publication/2013-03-02-371.html, 

viewed April 2013; and small amounts 

of geothermal and ocean energy capacity from CNREC, “China 

Renewables Utilization Data 2012,” op. cit. note 24; China also has 

small amounts of CSP capacity in pilot projects (see CSP section). 

30 China added 88.2 GW from Wang, “China renewables...,” op. 

cit. note 29. Total additions and renewable energy shares were 

adjusted by REN21 for different levels of wind and solar PV 

capacity used in this report. Wind additions were an estimated 

14.6 GW per Wang, idem, compared with 12.96 GW added from 

CWEA, op. cit. note 24, and GWEC, op. cit. note 5; and solar PV 

additions were an estimated 1.06 GW (on-grid only) per Wang, 

“China renewables...,” op. cit. note 29, compared with 3.51 GW 

added from IEA-PVPS, op. cit. note 24. The CWEA/GWEC and IEA- 

PVPS numbers were used because these reports were released 

at a later date and, presumably, based on more final data. The 

result is 88.6 GW of capacity added in 2012, which was used for 

calculating shares from hydropower and other renewables, based 

on wind capacity additions of 12.96 GW per GWEC, solar PV additions 

of 3.51 GW per IEA-PVPS, hydro additions of 15.51 GW per 

CEC, North China Electricity Regulatory Bureau, “China’s Electric 

Power Industry in 2012,” 22 February 2013, www.cec.org.cn/ 

yaowenkuaidi/2013-02-22/97555.html (using Google Translate), 

and bio-power capacity additions of 1 GW from Wang, op. cit. this 

note. China added 80.2 GW (including 12.85 GW of wind and 1.19 

GW solar PV), for a national total of 1,145 GW of electric capacity 

in operation CEC, op. cit. this note. To be conservative, the GSR 

used the higher CNREC number for added capacity, from Wang, 

“China renewables...,” op. cit. note 29. 

31 Share comes to 19.52% based on output from hydro (864 TWh), 

wind (3.5 TWh) and solar (3.5 TWh), from State Electricity 

Regulatory Commission, cited in “China’s Power Generating 

Capacity from Renewable Energy in 2012 up 30.3 Percent YoY,” 

ChinaScope Financial, 6 February 2013, at www.chinascopefinancial.com; 

and total electricity consumption of 4.9591 trillion 

kWh, from CEC, op. cit. note 19; and 20% “generation ratio of 

renewables” from Wang, “China renewables...,” op. cit. note 29. 

32 Increase in wind and solar PV output from CEC, op. cit. note 19. 

Note that hydropower output was up 29% in 2012 relative to 2011, 

but this was due more to hydrological variability than increased 

capacity; more than coal and passing nuclear from idem. 

33 Figure of 12.2% of generation from U.S. EIA, Monthly Energy 

Review March 2013 (Washington, DC: March 2013), Table 7.2a 

(Electricity Net Generation: Total (All Sectors)), p. 95; share of 

capacity (15.4%) from Federal Energy Regulatory Commission 

(FERC), Office of Energy Projects, “Energy Infrastructure Update 

for December 2012” (Washington, DC: 2013). All renewables 

accounted for 12.5% of net generation in 2011. 

34 In 2012, hydropower accounted for 6.8% of total electricity 

generation and other renewables for 5.4%. All data derived from 

U.S. EIA, op. cit. note 33, p. 95. Hydro generation declined in 

2012 relative to 2011 because the water supply in the Pacific 

Northwest fell from unusually high levels in 2011, from U.S. EIA, 

op. cit. note 33. 

35 Wind accounted for more than 45% of U.S. electric capacity additions 

in 2012 (based on 12,799 MW of wind capacity added) from 

U.S. EIA, “Wind Industry Brings Almost 5,400 MW of Capacity 

Online in December 2012,” viewed 25 April 2013, at www.eia.gov/ 

electricity/monthly/update/?scr=email; wind accounted for nearly 

41%, natural gas for 33%, coal for 17.1%, and solar power for 5.6% 

of U.S. electric capacity additions in 2012, based on data from 

FERC, op. cit. note 33. Wind accounted for 42% (based on 13,124 

MW added) according to AWEA, “4Q report: Wind energy top 

source for new generation in 2012; American wind power installed 

new record of 13,124 MW,” Wind Energy Weekly, 1 February 2013. 

About half from FERC, op. cit. note 33. 

01 



36 Share of consumption from BMU, op. cit. note 24; power generation 

from lignite still exceeds that from renewable sources, all 

from “Bruttostromerzeugung in Deutschland von 1990 bis 2012 

nach Energieträgern,” 14 February 2013, at www.unendlich-vielenergie.de/uploads/media/AEE_Strommix_Deutschland_2012_ 

mrz13.jpg. 

37 BMU, op. cit. note 24. 

38 Ibid. 

39 Spain based on data and sources in Endnote 25 in this section. 

Note that REE put the total at 29.6 GW (22,362 MW of wind; 4,410 

MW of PV; 1,878 MW of CSP; 943 MW of bio-power), per REE, The 

Spanish Electricity System...,” op. cit. note 25. 

40 Wind accounted for more than 18% of total demand and solar 

for more than 4%, from Red Eléctrica Corporación, Corporate 

Responsibility Report 2012 (Madrid: 2013), p. 60. 

41 Italy based on data and sources in Endnote 25 in this section. 

42 GSE, “Impianti a fonti rinnovabili in Italia...,” op. cit. note 25. 

43 Additions of small-scale hydropower and bio-power from MNRE, 

“Achievements,” op. cit. note 25, and from MNRE, Annual 

Report 2012–2013, op. cit. note 25; large-scale hydropower 

from Government of India, Ministry of Power, Central Electricity 

Authority, www.cea.nic.in/reports/monthly/inst_capacity/jan13. 

pdf, viewed 11 April 2013; wind power from GWEC, op. cit. note 5; 

solar PV from EPIA, op. cit. note 24, and from IEA-PVPS, op. cit. 

note 24. 

44 Based on 213 GW of total installed capacity from Sourabh Sen, 

“Assessing Risk and Cost in India: Solar’s Trajectory Compared to 

Coal,” RenewableEnergyWorld.com, 17 April 2013, and 211 GW of 

total capacity as of 31 December 2012 (but with MNRE data as of 

31 October 2013) from Indian Ministry of Power, Central Electricity 

Authority, “Highlights of Power Sector,” www.cea.nic.in/reports/ 

monthly/executive_rep/dec12/1-2.pdf; and on all renewables total 

of about 66.4 GW and non-hydro renewables total of almost 24 GW 

from sources in endnote earlier in this section. 

45 See Endnotes 24 and 25 in this section for data and sources for 

Brazil, China, India, Russia, and South Africa. 

46 Based on 636 MW of wind capacity under construction from 

GWEC, op. cit. note 5, p. 54, and 150 MW of CSP capacity under 

construction from “Abengoa Kicks Off South Africa’s First CSP 

Plants Construction,” CSP-World.com, 6 November 2012. 

47 EWEA, op. cit. note 25, pp. 6–7. In 2012, 44,601 MW of electric 

capacity was added; of this total, 30,968 MW was renewable. 

Natural gas accounted for 23% of added capacity, coal for 7%, 

CSP for 2%, hydro 1%, and other technologies smaller shares, 

from ibid. 

48 All renewables represented 33.9% (up from 22.5% in 2000) and 

non-hydro renewables 20.3% of the EU’s total installed electric 

capacity, from EWEA, op. cit. note 25. 

49 Shares of electricity and final energy from EurObserv’ER, op. cit. 

note 25, pp. 102–03. 

50 A study commissioned by Vestas on the largest users of renewable 

power found that Japan’s OJI Paper is the largest corporate 

user, followed by German building materials company Sto and 

the Finnish pulp and paper company UPM-Kymmene. Of the 389 

companies in the index, 36 sourced 100% of their power from 

renewables, including Adobe Systems, Kohl’s, and Whole Foods 

Market. In the Carbon Renewable Energy Index, prepared by 

BNEF, from BNEF, “Japan to Disengage from Nuclear to Embrace 

Renewable Energy,” Energy: Week in Review, vol. VI, iss. 151, 

11–17 September 2012. 

51 Joß Florian Bracker, Öko-Institut, Freiburg, personal 

communication with REN21, 3 May 2013. 

52 Ibid. 

53 The EPA’s Green Power Partnership, which works with more than 

1,400 U.S. organisations to facilitate green power purchasing, 

saw sales grow 22%, from Jenny Heeter, Philip Armstrong, and 

Lori Bird, Market Brief: Status of the Voluntary Renewable Energy 

Certificate Market (2011 Data) (Golden, CO: NREL, September 

2012); the Center for Resource Solutions’ Green-e Energy certification 

programme, the leading certifier of green power, saw sales 

increase 21%, from Center for Resource Solutions, 2011 Green-e 

Verification Report (San Francisco, CA: January 2013). 

54 U.S. Environmental Protection Agency (EPA), Green Power 

Partnership, “National Top 50 Partner List,” as of 9 January 2013, 

at www.epa.gov; 17 partners from EPA, “National Top 50,” www. 

epa.gov/greenpower/toplists/top50.htm, 9 January 2013. 

55 REN21, op. cit. note 14; Australia from “GreenPower,” viewed 

1 May 2013, at www.greenpower.gov.au; South Africa from 

“How to Buy Green Electricity Certificate (GECs),” www. 

capetown.gov.za/en/electricity/GreenElectricity/Pages/ 

Howtopurchasegreenelectricitycertificates.aspx, viewed 15 

February 2013; Japan from United Nations Economic and Social 

Commission for Asia and the Pacific (ESCAP), “Low Carbon Green 

Growth Roadmap for Asia and the Pacific. Case Study: Stimulating 

Consumer Interest in Businesses that Go Green—Japan’s Green 

Power Certificate Scheme,” 2012, at www.unescap.org. 

56 Vince Font, “WindMade Label to Expand to Other Renewables,” 

RenewableEnergyWorld.com, 4 December 2012. 

57 WindMade, “Consumer Demand for Climate Solutions Leads to 

Expansion of WindMade Label,” press release (Doha, Qatar: 4 

December 2012). 

58 EKOenergy Web site, www.ekoenergy.org. 

59 Industrial and commercial based on Julie Johnsson and Naureen 

S. Malik, “Nuclear Industry Withers in U.S. as Wind Pummels 

Prices,” Bloomberg.com, 11 March 2013; “Apple Owns Biggest 

Private Solar Power System in US,” FoxNews.com, 22 March 

2013; Rahul Sachitanand, “Big business groups to push renewable 

energy space by raising capacity,” Economic Times (India), 13 

February 2013; “Huge Solar Array Installed on Minnesota Store,” 

RenewableEnergyFocus.com, 11 September 2012; Stefan Nicola, 

“BMW Taps Wind to Guard Profits in Merkel’s Nuclear Switch,” 

RenewableEnergyWorld.com, 19 February 2013; General Motors, 

“General Motors Joins Solar Energy Industries Association,” 6 

February 2013, at www.gm.com; “IKEA Biggest Solar Owner in 

Texas,” Thin Film Intelligence Brief, 12–25 September 2011, 

at http://news.pv-insider.com; Carl Levesque, “Apple, Walmart 

Highlight Big-name Corporations’ Move to Renewables,” 

Wind Energy Weekly (AWEA), 29 March 2013. Community and 

cooperative based on “Co-operative energy benefits highlighted,” 

Refrigeration and Air Conditioning Magazine, 2 November 2012, 

at www.racplus.com; on Joseph Wiedman and Laurel Varnado, 

“Regulatory Efforts,” Chapter 1 in 2012 Updates and Trends Report 

(Latham, NY: Interstate Renewable Energy Council, September 

2012); as of August 2012, U.S. community solar programmes had 

a combined capacity of nearly 10.4 MW, from Heeter, Armstrong, 

and Bird, op. cit. note 53; and more than 80,000 people in 

Germany hold share in collectively run electricity and heat systems; 

in Denmark, more than 100 wind energy cooperatives have 

combined ownership of three-fourths of Denmark’s turbines, from 

Anna Leidreiter, “The Last Word: Local Development Through 

Community-led Renewable Energy,” Renewable Energy World, 

March–April 2013, pp. 54–55. 

60 Peter Terium, CEO of RWE, cited in “Analysis: Renewables Turn 

Utilities into Dinosaurs of the Energy World,” Reuters, 8 March 

2013. This is a growing issue particularly in Germany, Spain, 

and Italy, but even in France and the United Kingdom, per idem. 

Decentralised production by corporations and municipalities is 

taking over market share from utilities, per UBS, The Unsubsidised 

Solar Revolution (Zurich, Switzerland: UBS Investment Research, 

European Utilities,15 January 2013). 

61 IEA-Renewable Energy Technology Deployment (IEA-RETD), 

Renewables for Heating and Cooling – Untapped Potential (Paris: 

OECD/Paris, 2007). 

62 See, for example, Sino-German Project for Optimization of 

Biomass Utilization, “China Biogas Sector,” at www.biogas-china. 

org, and Bioenergy section in Market and Industry Trends by 

Technology. 

63 There are currently 56 countries tracked in Weiss and Mauthner, 


64 Solar heaters cost an estimated 3.5 times less than electric water 

heaters and 2.6 less than gas heaters over the system lifetime, 

according to Chinese Solar Thermal Industry Federation, cited 

in Bärbel Epp, “Solar Thermal Competition Heats Up in China,” 

RenewableEnergyWorld.com, 10 September 2012. 

65 Lund, Freeston, and Boyd, op. cit. note 1; updates from Lund, op. 

cit. note 1. 

66 Ibid. 

67 Germany from BMU, op. cit. note 24; Danish Ministry of Climate, 

Energy and Building, “Danish Energy Agreement,” 22 March 

2012, at www.kemin.dk. While renewable heat output in Germany 

was considerably higher in 2012, the share was unchanged from 

2011 due to a weather-driven increase in total heat consumption, 

from BMU, “Further Growth in Renewable Energy in 2012,” 

updated 28 February 2013, at www.erneuerbare-energien.de. 

138

68 Dong Energy, “Green Heat to the Greater Copenhagen Area,” 

press release (Fredericia, Denmark: 8 April 2013); Japan from 

ESCAP, op. cit. note 55; U.K. from Dave Elliott, “Green Energy 

Retailing,” EnvironmentalResearchWeb.org, 28 April 2012. 

69 For hybrid systems, see, for example, Stephanie Banse, 

“Thailand: Government Continues Subsidy Programme in 2013,” 

SolarThermalWorld.org, 15 February 2013; and “Solar + Heat 

Pump Systems,” Solar Update (IEA Solar Heating and Cooling 

Programme), January 2013; balancing variable renewables from 

Rachana Raizada, “Renewables and District Heating: Eastern 

Europe Keeps in Warm,” RenewableEnergyWorld.com, 13 

September 2012; see also Peter Kelly-Detwiler, “Denmark: 1,000 

Megawatts of Offshore Wind, And No Signs of Slowing Down,” 

Forbes, 26 March 2013. 

70 Over 2.5% based on IEA, Technology Roadmap – Biofuels for 

Transport (Paris: OECD/IEA, 2011). Some countries have much 

higher shares, including Brazil (20.1%), the United States (4.4%) 

and the EU (4.2%), as of 2010, from IEA, Tracking Clean Energy 

Progress (Paris: OECD/IEA, 2013), p. 90; 3.4% from preliminary 

estimates from IEA, Medium-Term..., op. cit. note 1. 

71 See, for example, Rich Piellisch, “Ballast Nedam’s CNG Net 

for 225 Biomethane Buses in Holland,” 6 April 2012, at www. 

fleetsandfuels.com; “Netherlands Regional Authorities Boost 

Biomethane Fuel for Vehicles,” ngvglobal.com, 20 October 

2012; “Biomethane Vehicle-Fuel Sales Increase in Sweden,” 

ngvglobal.com, 17 September 2012; “Indiana Dairy Fleet to Refuel 

with Renewable Biomethane,” ngvglobal.com, 22 November 

2012; Gasrec, “UK’s Gasrec Partners with B&Q to Fuel Liquid 

Biomethane Dual-Fuel Lorries,” ngvglobal.com, 20 February 

2013; “NZ Biomethane Project Highly Commended,” ngvglobal. 

com, 28 May 2012; Nicolaj Stenkjaer, “Biogas for Transport,” 

Nordic Folkecenter for Renewable Energy, November 2008, 

at www.folkecenter.net/gb/rd/transport/biogas_for_transport; 

Switzerland from Dunja Hoffmann, Deutsche Gesellschaft für 

Internationale Zusammenarbeit (GIZ), personal communication 

with REN21, 29 April 2011. 

72 For example, “ENOC and Dubai Sign MoU to Convert Flared 

Biogas to Biomethane Fuels,” ngvglobal.com, 12 February 2013; 

“California Energy Commission Funds Biomethane and CNG 

Fuel Projects,” ngvglobal.com, 13 February 2013; “Gaz Métro 

Secures Biomethane Fuel Supply for HD Market,” ngvglobal. 

com, 3 August 2012; “Biomethane Joint Venture to Provide Fuel 

for Philippine NGVs,” ngvglobal.com, 18 June 2012; “Carrefour 

Plans Closed Cycle Waste to Biomethane Test,” ngvglobal.com, 23 

November 2012; “Hamburg Water’s Fleet Powered by Sewage,” 

ngvglobal.com, 25 October 2012; “First Delivery of Liquified 

Biogas in Sweden,” ngvglobal.com, 16 August 2012; “Valtra Plans 

Biomethane Dual-Fuel Tractor Production in 2013,” ngvglobal. 

com, 15 February 2013. 

73 Deutsche Bahn, “DB’s Long-distance Transport Goes Green: As of 

April 2013. At Least 75 Per Cent of All Journeys Will Be Powered 

by Renewable Energy Sources – Percentage of Green Electricity 

Tripled,” press release (Berlin: 26 February 2013). Another example 

is a partnership between Ford Motor Company and Sunpower 

Corp., which joined in 2011 to offer discounts on rooftop solar 

PV systems to Ford Focus EV customers, from Emily Hois, “GM’s 

Commitment to Solar Going Strong,” RenewableEnergyWorld. 

com, 24 May 2013. 

01 


ENDNOTES 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Bioenergy 

Bioenergy 

1 The International Energy Agency (IEA), World Energy Outlook 

2012 (Paris: 2012) reported 12,730 Mtoe of world primary energy 

demand in 2010. This number was extrapolated out to 2012 

by assuming 2.6% growth per year in non-OECD countries and 

limited growth in OECD countries. The resulting 12,780 Mtoe was 

converted to 537 EJ. The estimated total bioenergy share is based 

on Helena Chum et al., “Bioenergy,” Chapter 2 in O. Edenhofer et 

al., eds. IPCC Special Report on Renewable Energy Resources and 

Climate Change Mitigation, prepared by Working Group III of the 

Intergovernmental Panel on Climate Change (Cambridge, U.K. and 

New York: Cambridge University Press, 2011). Given the uncertainties 

of this extrapolation and particularly of the traditional 

biomass data available, the 10% of primary energy quoted as 

coming from biomass is probably within the range of 8–12%. 

2 Chum et al., op cit. note 1. 

3 There is extensive literature on the topic of sustainable biofuel 

production; see, for example, Uwe R. Fritsche, Ralph E.H. Sims, 

and Andrea Monti, “Direct and Indirect Land-Use Competition 

Issues for Energy Crops and Their Sustainable Production – An 

Overview,” Biofuels, Bioproducts and Biorefining, 22 November 

2010; M. Adami, et al., “Remote Sensing Time Series to Evaluate 

Direct Land Use Change of Recent Expanded Sugarcane Crop 

in Brazil,” Sustainability, vol. 4 (2013): 574-85; J. Clancy and J. 

Lovett, Biofuels and Rural Poverty (Oxford: Earthscan Publishing, 

2011); and Global Bioenergy Partnership, The Global Bioenergy 

Partnership Sustainability Indicators for Bioenergy, First Edition 

(Rome: Food and Agriculture Organization of the United Nations, 

2011) 

4 The Roundtable on Sustainable Palm Oil (RSPO), established in 

2004, aims to ensure that palm oil plantations, which now equate 

to around 12 million hectares, are managed and operated in a 

sustainable manner, per RSPO Secretariat, “Why Palm Oil Matters 

In Your Everyday Life” (Kuala Lumpur: January 2013). Some 28 

million tonnes of palm oil are produced annually, comprising some 

30% of total global vegetable oil production, of which 15% are 

used for biofuels, per RSPO Secretariat, “Sustainability Initiatives - 

Palm Oil, Roundtable on Sustainable Palm Oil (RSPO),” at 

www.roundtablecocoa.org/showpage.asp?commodity_palmoil. 

5 David Laborde, Assessing the Land Use Change Consequences 

of European Biofuel Policies, report prepared for the Directorate 

General for Trade of the European Commission (Brussels: 2011). A 

series of BBC reports in late 2012 covered the issue of food versus 

fuel being exacerbated by drought conditions; see James Melik, 

“Nestle blames biofuels for high food prices,” BBC News, 17 July 

2012; James Melik, “New biofuels offer hope to hungry world,” 

BBC News, 8 August 2012; and “US biofuel production should be 

suspended, UN says,” BBC News, 10 August 2012. There is also 

an argument that producing biofuels increases household income, 

which leads to improved access to food; see Clancy and Lovett, 


6 World corn production in 2012 was around 830 million tonnes, 

per Oklahoma State University, Department of Plant and Soil 

Sciences, Nitrogen Use Efficiency Web, “World Wheat, Corn & 

Rice,” http://nue.okstate.edu/Crop_Information/World_Wheat_ 

Production.htm; Laborde, op. cit. note 5. The U.S. Department 

of Agriculture’s monthly supply and demand estimates for 

agricultural commodities, released in mid-December 2012, put 

consumption of corn for ethanol production at 27% of U.S. maize 

crop production in 2010/11, although about one-third of the processed 

corn ends up as an animal feed co-product, per Pangea, 

Who’s Fooling Whom? The Real Drivers Behind the 2010/2011 

Food Crisis in Sub-Saharan Africa (Brussels: October 2012). The 

amounts of distillers dried grains with solubles (DDGS) produced 

are provided in U.S. Grains Council, A Guide to Distiller’s Dried 

Grains with Solubles (DDGS) (Washington, DC: October 2012). 

7 Figure 5 based on bioenergy data for 2010 from IEA, op. cit. note 

1. Based on 1,277 Mtoe (53.7 EJ) in 2010 and considering a 

growth rate of 1.4% per year. CHP with biomass is included under 

both electricity and heat. Available datasets used to compile each 

component of Figure 5 have uncertainties in the region of +10% 

or more. The losses shown occur during the process when converting 

from the various “primary” biomass feedstocks to obtain 

useful heat, electricity, or liquid and gaseous biofuels. Traditional 

biomass is converted inefficiently into useful heat for direct use, 

whereas modern biomass is converted into a range of energy 

carriers (solid, liquid, and gaseous fuels as well as electricity and 

heat) which are then consumed by end-users to provide useful 

energy services in the three sectors. 

8 Traditional biomass (see Glossary for definitions of traditional and 

modern biomass used in this report) is fuelwood, charcoal, animal 

dung, and agricultural residues combusted in simple appliances 

(such as cooking stoves) with very low efficiencies (typically 

around 10–15%) to produce heat used mainly for cooking and 

the heating of dwellings in non-OECD countries. This definition 

is debatable, because stoves with relatively energy-efficient 

designs are becoming more widely used and, in addition, some 

older designs of large-scale biomass conversion technologies with 

relatively low efficiencies are included under “modern biomass.” 

Heat data are very uncertain, but the GSR 2012 reported that total 

heat generated from biomass was around 45.5 PJ in 2011, which 

rose to about 46 PJ in 2012. This was based on global demand for 

biomass of 1,230 Mtoe (51.5 EJ) in 2009 and considering a growth 

rate of 1.4% per year, from IEA, World Energy Outlook 2011 (Paris: 

2011), and on the breakdown of bioenergy use for traditional and 

modern applications based on Chum et al., op cit. note 1. 

9 IEA, op. cit. note 1. 

10 IEA, op. cit. note 1. Also see Endnote 1 for assumptions about total 

primary energy consumption and the share from biomass. 

11 There are three major sources of biofuel production and 

consumption data: F.O. Licht, IEA Medium Oil Market Reports, and 

the FAO Agricultural Outlook (see OECD, “Agricultural Outlook,” 

http://stats.oecd.org/viewhtml.aspx?QueryId=36348&vh=0000 

&vf=0&l&il=&lang=en). The quoted data for 2012 are preliminary 

and vary considerably between them, so throughout this section, 

to assess the trends and biofuel production in 2012 compared 

with 2011, F.O. Licht data were mainly used. The 1% drop in total 

biofuel volume produced in 2012 (from 106.5 billion litres in 2011 

to 105.5 billion litres) was offset partly by an increase in the total 

energy content because ethanol (~23 MJ/l) declined but biodiesel 

(~40MJ/l) increased. By way of comparison on a volume basis, the 

IEA Medium Term Oil Market Report 2013 (Paris: 2013) showed a 

7% reduction of total biofuel production from 106.5 billion litres in 

2011 to 101.1 billion litres in 2012. 

12 P. Lamers, Ecofys/Utrecht University, personal communication 

with REN21, 9 April 2013. Around 3.3 million tonnes comes 

to Europe from North America; 1.0 million tonnes comes from 

Eastern bloc countries; 0.1 million tonnes comes from South 

Africa, Australia, and New Zealand; and 3.7 million tonnes is 

traded internally between European countries. See also Reference 

Table R3. 

13 Biomass exchanges include the North American (nabiomassexchange.com/), 

Minneapolis (www.mbioex.com), Minnesota 

(mnbiomassexchange.org), and Biomass Commodity Exchange 

(www.biomasscommodityexchange.com). Rotterdam also has 

an exchange for pellets, see “World's First Biomass Commodity 

Exchange,” Rotterdam Port Information Yearbook, 52nd Edition, 

at www.rotterdamportinfo.com. 

14 Details of pellet trading routes in REN21, Renewables 2012 Global 

Status Report (Paris: 2012), Figure 6, p. 34. Note that these were 

preliminary data and that volumes of flows change from year to 

year. For wood chip trade, see P. Lamers et al., Global Wood Chip 

Trade for Energy (IEA Bioenergy, Task 40, 2012). 

15 Based on 300 PJ of solid biomass fuels (excluding charcoal) 

traded in 2010, from P. Lamers et al., “Developments in international 

solid biofuel trade – an analysis of volumes, policies, and 

market factors,” Renewable and Sustainable Energy Reviews, 

vol. 16, no. 5 (2012), pp. 3176–99, and on 120–130 PJ of net 

trade in fuel ethanol and biodiesel in 2009, from P. Lamers et al., 

“International bioenergy trade – a review of past developments 

in the liquid biofuels market,” Renewable and Sustainable Energy 

Reviews, vol. 15, no. 6 (2011), pp. 2655–76. 

16 Data for 2012 are preliminary. Figure 6 from the following 

sources: “World Pellets Map,” Bioenergy International Magazine 

(Stockholm: 2013); Maurizio Cocchi et al., Global Wood Pellet 

Industry Market and Trade Study (IEA Bioenergy, Task 40, 

Sustainable Bioenergy Trade, December 2011); Eurostat, “Data 

explorer - EU27 trade since 1995 by CN8,” 2013, at http://epp. 

eurostat.ec.europa.eu/portal/page/portal/statistics/search_database; 

C.S. Goh et al., “Wood pellet market and trade: a global 

perspective,” Biofuels, Bioproducts and Biorefining, vol. 7 (2013), 

pp. 24–42; Lamers et al., op. cit. note 15. 

17 Cocchi et al., op. cit. note 16. 

18 IEA, Bioenergy Annual Report 2011 (Paris: 2011). 

19 Estimate of 8.2 million tonnes from sources in Endnote 16. 

20 Data for 2012 showing that Canada exported 1.22 million 

tonnes and the United States exported 1.995 million tonnes 

140

are preliminary and are based on P. A. Lamers, Ecofys/Utrecht 

University, Netherlands, personal communication with REN21, 14 

May 2013. Increase of nearly 50% based on preliminary estimates 

that Canada exported 1.16 million tonnes and the United States 

exported 1.001 million tonnes to Europe, from Eurostat, “Data 

Explorer - nrg_1073a,” http://appsso.eurostat.ec.europa.eu/ 

nui/show.do?dataset=nrg_1073a&lang=en, viewed April 2012; 

Eurostat, “Data Explorer - EU27 Trade Since 1995 By CN8,” op. 

cit. note 16; U.S. Department of Agriculture, “Global Agricultural 

Trade System (GATS),” www.fas.usda.gov/gats/default.aspx, 

viewed April 2012. For more specific trade data, see Reference 

Table R3 in this report and in GSR 2012. 

21 The Tilbury plant consumes around 2.4 million tonnes of pellets 

annually, but it is due to be shut down in July 2013 in advance of 

possible refurbishment; see RWE, “Flexible power from biomass,” 

www.rwe.com/web/cms/en/1295424/rwe-npower/about-us/ 

our-businesses/power-generation/tilbury/tilbury-biomass-conversion/. 

Large Drax coal-fired power plant from Kari Lundgren 

and Alex Morales, “Biggest English polluter spends $1billion to 

convert coal plant to biomass,” RenewableEnergyWorld.com, 26 

September 2012. 

22 Bioenergy Insight, “Expansion at Port of Tyne to benefit pellet 

handling,” 4 February 2013, at www.bioenergy-news.com. 

23 Piers Evans, “Wood-based biomass blossoming in Asia,” 

RenewableEnergyWorld.com, 4 February 2013. 

24 Data from F.O. Licht, “Fuel Ethanol: World Production, by Country 

(1000 cubic metres),” 2013, and F.O. Licht, “Biodiesel: World 

Production, by Country (1000 T),” 2013. 

25 The full trade statistics for biofuels in 2012 were not available 

at the time of writing, but monthly data were available from F.O. 

Licht. From 2011 to June 2012, U.S. ethanol production was some 

106 million litres per day, which dropped to some 94 million litres 

per day during the second half of 2012. 

26 Cocchi et al., op. cit. note 16. 

27 EurObserv’ER, The State of Renewable Energies in Europe: Edition 

2011 (Paris: 2011). 

28 F.O. Licht, op. cit. note 24, both sources. 

29 In GSR 2012, the value quoted for the total installed modern heat 

plant capacity was 290 GW th in 2011. This was estimated as the 

average of the capacity obtained from secondary modern bioenergy 

for heat in the year 2008 presented in Edenhofer et al., op. 

cit. note 1, assuming a growth rate of 3%, and the heat capacity in 

the year 2009 from W.C. Turkenburg et al., “Renewable Energy,” in 

T.B. Johansson et al., eds., Global Energy Assessment (Cambridge, 

U.K.: Cambridge University Press, 2012), pp. 761–900. For 2012, 

a 3% growth rate was also assumed. No more-accurate heat data 

currently exist. 

30 Figure of 8% from EurObserv’ER, Solid Biomass Barometer (Paris: 

2012). 

31 In 1975, it had been 40 TWh. Tildy Bayar, “Sweden’s bioenergy 

success story,” RenewableEnergyWorld.com, 13 March 2013; 

Swedish Bioenergy Association Web site, www.svebio.se. 

32 Janet Witt, Energetische Biomassenutzung in Deutschland 

(Leipzig: Deutsches Biomasseforschungszentrum gemeinnützige 

GmbH (DBFZ), January 2013); Janet Witt et al., Monitoring 

zur Wirkung des Erneuerbare-Energien-Gesetz (EEG) auf die 

Entwicklung der Stromerzeugung aus Biomasse (Leipzig: DBFZ, 

2012). 

33 Philippines Department of Energy, Achieving Energy Sustainability 

(Manila: 2012), at www.doe.gov.ph/EnergyAccReport/default. 

htm; “As heating oil prices rise, Massachusetts seeks bio¬diesel,” 

Biofuels Digest, 28 November 2011, at www.biofuelsdigest. 

com; European Biomass Association, Annual Statistical Report 

2011 (Brussels: Renewable Energy House, 2011); Springboard 

Biodiesel, “Biodiesel Mandates and Initiatives,” www. springboardbiodiesel.com/biodiesel-big-mandates-Initiatives-global, 

viewed 14 April 2012. 

34 Sino-German Project for Optimization of Biomass Utilization, 

“China Biogas Sector,“ www.biogas-china.org/index. 

php?option=com_flexicontent&view=category&cid=18&Itemid=35&lang=en; 

Wang Wei, China National Renewable Energy 

Center (CNREC), “China renewables and non-fossil energy utilization,” 

www.cnrec.org/cn/english/publication/2013-03-02-371. 

html, viewed April 2013 

35 Ashden Awards for Sustainable Energy, “Biogas plants providing 

sanitation and cooking fuel in Rwanda,” 2005, www.ashden.org/ 

files/reports/KIST%20Rwanda2005%20Technical%20report.pdf. 

36 For more information, see EUBIONET3, “Heating and cooling 

with biomass. Spain 1: Geolit, District heating and cooling central 

system with biomass,” www.eubionet.net, viewed 24 April 2012, 

and IEA, Cities, Towns and Renewable Energy – YIMFY (Yes in My 

Front Yard) (Paris: 2009), pp. 85–90. 

37 Bio-power data for this section compiled from EIA, Electric Power 

Monthly, February 2012, at www.eia.gov/electricity/monthly/current_year/february2012.pdf, 

and from EurObserv’ER, op. cit. note 

27; United States from Federal Energy Regulatory Commission, 

Office of Energy Projects, Energy Infrastructure Update for 

December 2012 (Washington, DC: 2012); Germany from 

“Entwicklung der erneuerbaren Energien in Deutschland im Jahr 

2012,” based on Working Group on Renewable Energy Statistics 

(AGEE Stats), February 2013 and AGEE Stats, “Renewable energy 

sources 2012,” at www.erneuerbare-energien.de; China from 

China Renewables Utilization Data 2012, www.cnrec.org.cn/ 

english/publication/2013-03-02-371.html; Brazil from National 

Electric Energy Agency (ANEEL), “Generation Data Bank,” www. 

aneel.gov.br/aplicacoes/capacidadebrasil/capacidadebrasil. 

cfm, in Portuguese; United Kingdom from U.K. Government, 

Department of Energy and Climate Change, “Energy trends 

section 6: renewables,” and “Renewable electricity capacity 

and generation (ET6.1),” 9 May 2013, at https://www.gov.uk/ 

government/publications/renewables-section-6-energy-trends; 

for France, solid biomass capacity added in 2012 was 77 MW 

and biogas was 236 MW, per ERDF, “Installations de production 

raccordées au réseau géré par ERDF à fin décembre 2012,” www. 

erdfdistribution.fr/medias/Donnees_prod/parc_prod_decembre_2012.pdf; 

Spain from Red Eléctrica de España, The Spanish 

Electricity System: Preliminary Report 2012 (Madrid: 2012); 

India from Ministry of New and Renewable Energy (MNRE), 

“Achievements,” http://mnre.gov.in/mission-and-vision-2/achievements/; 

Portugal from Directorate General for Energy and Geology 

(DGEG), Portugal, 2013, www.precoscombustiveis.dgeg.pt. Note 

that IEA Energy Statistics online data services, 2013, were used 

to check against OECD country data from other references used; 

also 2011 capacity data for Austria, Belgium, Canada, Denmark, 

the Netherlands, and Sweden were assumed to have increased 

by 2%. Also note that the preliminary capacity data for several 

countries estimated in GSR 2012 were low in comparison with 

updated data. In the BRICS countries (Brazil, Russia, India, China, 

South Africa), for example, capacity increased by over one-third. 

38 See Figure 7, footnotes, and Endnote 37 for assessment methods 

and references used. Percentage growth of electricity in 2012 

was lower than percentage growth of capacity over the same 

period due to annual variations in the merit orders and amount 

dispatched, as shown by specific national capacity factors. 

39 Figure 7 from sources in Endnote 37. 


41 REN21, op. cit. note 14, p. 34. 

42 “Biomass News,” Biomass Magazine, March 2013, at http://issuu. 

com/bbiinternational/docs/march_13-bmm, based on Federal 

Regulatory Commission’s Office of Energy Projects. 

43 Data based on U.S. Department of Energy, Energy Information 

Administration (EIA), Monthly Energy Review, April 2013 (that 

included non-renewable MSW but this is a small share of the total 

power); IEA Energy Statistics online data services, 2013, were 

used to check 2011 data. 

44 Figure of 9.6 GW from ANEEL, op. cit. note 37. 

45 EurObserv’ER, The State of Renewable Energies in Europe: 

Edition 2012 (Paris: 2012); France added 77 MW of solid biomass 

capacity in 2012 and 236 MW of biogas, per ERDF, op. cit. note 

37; IEA Energy Statistics online data services, 2013, was used to 

check 2011 data. 

46 Figure of 35.9 TWh from EurObserv’ER, Biogas Barometer (Paris: 

2012); 18.2 TWh from EurObserv’ER, Renewable Municipal Waste 

Barometer (Paris: 2012). 

47 AGEE Stats, “Renewable energy sources 2012,” op. cit. note 37. 

48 EurObserv’ER, Biogas Barometer, op. cit. note 46; AGEE Stats, 

“Entwicklung der erneuerbaren Energien in Deutschland im Jahr 

2012,” February 2013. 

49 Figure of 8.0 GW from Wang, op. cit. note 34, but data provided 

were rounded off to nearest GW because of uncertainties; China’s 

growth rate based on 2012 capacity from idem. 

50 Institute for Sustainable Energy Policies (ISEP), Renewables Japan 

Status Report 2013 (Tokyo: May 2013). 

51 Small gasifier capacity from World Bioenergy Association, 

member newsletter, December 2012, at www.worldbionergy.org. 

02 


ENDNOTES 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Bioenergy 

For data to end-January 2013, see MNRE, op. cit. note 37. 

52 International Renewable Energy Agency (IRENA), Biomass 

Co-firing: Technology Brief (Abu Dhabi: 2013). 

53 ANEEL, op. cit. note 37. 

54 Bioenergy Insight, “Zimbabwe capital urged to house biogas 

facility,” 13 February 2013, at www.bioenergy-news.com; DGEG, 


55 P. Richardson, “TowerPower plans Kenya’s first biomass power 

plant, daily says,” Bloomberg.com, 15 January 2012. 

56 IEA, Biofuels for Transport (Paris: 2011). 

57 European Commission, “Commission Staff Working Document: 

Impact Assessment” (Brussels: 17 October 2012). Lack of proper 

infrastructure, as well as low incomes for rural populations, are 

the main challenges for developing countries in the efficient production 

of food. It can be argued that, under some circumstances, 

sustainable biofuels production can stimulate food production 

by generating revenue. Bloomberg New Energy Finance, 2012 

Bioenergy Forum Leaders Results Book (London: 1 March 2013). 

58 Global production and Figure 8 based on F.O. Licht, op. cit. note 

24, both sources. Ethanol data converted from cubic metres to 

litres using 1,000 litres/cubic metre. Biodiesel reported in 1,000 

tonnes and converted using a density value for biodiesel of 1,136 

litres/tonne based on NREL, Biodiesel Handling and Use Guide, 

Fourth Edition (Golden, CO: January 2009). 

59 Figure of 21.6 billion litres from F.O. Licht, op. cit. note 24; investment 

from Ernst and Young, Renewable Energy Attractiveness 

Indices, November 2012. 

60 F.O. Licht, op. cit. note 24. 

61 Bayar, op. cit. note 31. 

62 World price data extracted from OECD, op. cit. note 11, with 

similar data extracted from IEA, Medium Term Oil Market Report 

(Paris: October 2012), although the U.N. Food and Agriculture 

Organization stated that global ethanol production was a far 

higher 113 billion litres in 2012; U.S data from EIA, “2012 Brief: 

U.S. ethanol prices and production lower compared to 2011,” 31 

January 2013, at www.eia.gov/todayinenergy/detail.cfm?id=9791. 

63 FAO Agricultural Outlook 2012–2021 quotes average world price 

in 2012 at $152.74 per 100 litres, per OECD, op. cit. note 11. 

64 Data from IEA Medium Term Oil Market Reports and other sources 

including R. Pernick, C. Wilder, and T. Winnie, Clean Energy Trends 

2013, Clean Edge, March 2013. 


66 U.S. Environmental Protection Agency (EPA), Finalizes 2013 

Biomass-Based Diesel Volume, Regulatory Announcement 

(Washington, DC: September 2012). 


68 Spain and Italy from F.O. Licht, op. cit. note 24; Portugal from 

DGEG, op. cit. note 37. 

69 Brazilian National Agency of Petroleum (ANP), Natural Gas and 

Biofuels, Anuário Estatístico Brasileiro do Petróleo, Gás Natural e 

Biocombustíveis-2011 (Brasilia: 2011). 


71 Roundtable on Sustainable Biofuels, “Global Clean Energy 

Holdings Earns Roundtable on Sustainable Biofuels (RSB) 

certification,” press release (McLean, VA: 26 November 2012); 

“Cuba plant eyes green biodiesel alternative,” China Post, 18 July 

2012. 

72 Data are uncertain. One reference (Wang, op. cit. note 34) stated 

that biodiesel had increased to 0.5 billion litres, but F.O. Licht (op. 

cit. note 24) stated that it has maintained at 0.16 billion litres. 


74 Ibid. 

75 Data from ibid. 


77 “Zambia’s Copperbelt to triple biodiesel production,” Biofuels 

Digest, 6 January 2012, at www.biofuelsdigest.com. 

78 Andrew Herndon, “Cellulosic biofuel to surge in 2013 after first US 

plants open,” RenewableEnergyWorld.com,12 December 2012; 

J. Lane, “The Obama plan for cost-competitive military biofuels 

– the 10 minute guide,” Biofuels Digest, 3 July 2012, at www. 

renewableenergyworld.com; Advanced Biofuels Association, 

“Advanced biofuels powers US naval carrier strike force in Pacific 

exercise,” July 2012, at www.sacbee.com. 

79 Jim Lane, “IEA says cellulosic biofuels capacity has tripled since 

2010: New Task 39 global report,” Biofuels Digest, 5 April 2013, 

at www.biofuelsdigest.com. About half the plants listed here are 

in the United States. EPA biofuel registrations by fuel type can be 

found at EPA, “2012 RFS2 Data,” www.epa.gov/otaq/fuels/rfsdata 

/2012emts.htm, updated 7 April 2013. The original U.S. mandate 

of 1.5 million tonnes was waived to 25,946 tonnes, but only 60.2 

tonnes were actually registered by April 2012. The EPA shows 

20,069 tonnes in April 2012 but these were certificate waivers 

purchased from the U.S. Treasury. 

80 “Shangdong Longlive Biotechnology delivers first batch of bioethanol 

from corn cobs,” GreenProspectsAsia.com, 5 December 

2012. 

81 For individual plants worldwide and their annual current production, 

see European Biofuels Technology Platform, www.biofuelstp. 

eu/advancedbiofuels.htm#prod. 

82 The number of fuelling stations selling 100% biomethane doubled 

from 35 to 76 in the first seven months, and, by August, the fuel 

was available in varying ratios at nearly 230 of Germany’s 900 natural 

gas filling stations, per “Germany Doubles Pure Biomethane 

Filling Stations in Seven Months,” ngvglobal.com, 16 August 

2012; 119 fuelling stations and increase from 6% to 15% from 

Christian Müller, “Biomethane in the Fast Lane,” German Energy 

Agency (DENA), 27 March 2013, at www.dena.de/presse-medien/ 

pressemitteilungen/biomethan-auf-der-ueberholspur.html 

(viewed using Google Translate). 

83 There were around 1.7 million gas-powered vehicles operating 

in Europe in 2012 but most used natural gas, per NGVA 

Europe, “European NGV Statistics,” www.ngvaeurope.eu/ 

european-ngv-statistics. 

84 Other vehicles in the fleet were using ethanol. “Stockholm City 

Fleet Now 98% Green, 50% Biomethane,” ngvglobal.com, 4 

October 2012. 

85 However, most of the plants produce biofuels and animal feed 

as a co-product, and not a wider range of multi-products, per 

Renewable Fuels Association, “Biorefinery Locations,” www. 

ethanolrfa.org/bio-refinery-locations/, updated 24 April 2013. 

86 Piers Grimley Evans, “Metso biomass plant to heats towns in 

Finland,” Cogeneration and On-site Power Production, 22 January 

2013, at www.cospp.com; Piers Grimley Evans, “Metso to supply 

Swedish biomass CHP plant,” Cogeneration and On-site Power 

Production, 28 November 2012, at www.cospp.com; Bioenergy 

Insight, “New Russian biomass plant appoints technology 

supplier,” 13 February 2013, at www.bioenergy-news.com. NOTE: 

Many similar biomass projects under development in Europe and 

elsewhere are described at www.cospp.com. 

87 Piers Grimley Evans, “Local-scale wood-fired CHP accelerates 

in UK,” Cogeneration and On-site Power Production, 21 January 

2013, at www.cospp.com. 

88 The project was co-financed through a government award and 

with revenues obtained from the sale of 200 million emission 

allowances from the EU emissions trading scheme, per Bayar, op. 

cit. note 31. 

89 Masumi Suga and Yasumasa Song, “JFE unit’s boiler orders 

to surge as biomass takes hold in Japan,” Bloomberg.com, 16 

January 2013. 

90 Bioenergy Insight, “North American wood pellet export to Europe 

rises,” 29 January 2013, at www.bioenergy-news.com. 

91 Bioenergy Insight, “Renewable energy facility celebrates year 

in production,” 1 March 2013, at www.bioenergy-news.com; 

T. Probert, “Biomass industry 2012 review – a mixed bag,” 

RenewableEnergyWorld.com, 24 December 2012. 

92 M. Wild, Principal, Wild and Partners, LLC, Vienna, personal 

communication with REN21, 2013. Note that a single average size 

coal power plant converted to co-fire with torrefied biomass would 

consume more than 10–20 times this current global production 

capacity. Torrefaction is a thermal pre-treatment process 

applicable to all solid biomass. Compared with wood chips or 

ordinary pellets, the volatile content of torrefied (or black) pellets 

is reduced, the carbon content and heat values increased, and 

grindability, water resistance, and storability improved. Typical 

net heat value is 21 GJ/tonne. Densified black pellets or briquettes 

contain eight times the energy content of the same volume of 

green wood chips so logistics costs can be reduced, even by 

30% lower than other densified products such as wood pellets. 

Torrefaction of biomass has been presented as a game-changer 

for coal substitution, but even though major advances have been 

142

made, this has not yet become evident. Michael Deutmeyer et al., 

Possible Effects of Torrefaction on Biomass Trade (IEA Bioenergy, 

Task 40, Sustainable Bioenergy Trade, 2012). 

93 European Biomass Association, “International Biomass 

Torrefaction Council,” www.aebiom.org/?p=6442. 

94 Green Gas Grids, “Overview of biomethane markets and regulations 

in partner countries,” www.greengasgrids.eu/?q=node/114. 

95 Louise Downing, “Rising Trend: Poop Powers Ski Resorts and 

Water Treatment Center in Europe,” RenewableEnergyWorld.com, 

20 February 2013. 

96 “First Dutch sustainable ‘green gas’ station opens in Port of 

Amsterdam,” Renewable Energy Focus, 2012, at http://mail. 

elsevier-alerts.com/go.asp?/bEEA001/mDCKDC5F/uOHPRA5F/ 

xUII5C5F. 

97 “Carrefour Plans Closed Cycle Waste to Biomethane Test,” 

ngvglobal.com, 23 November 2012; “First Delivery of Liquified 

Biogas in Sweden,” ngvglobal.com, 16 August 2012. 

98 United States from Ernst and Young, Renewable Energy 

Attractiveness Indices, November 2012. 

99 Philippines Department of Energy, “Achieving Energy 

Sustainability,” 2012, www.doe.gov.ph/EnergyAccReport/default. 

htm. 

100 C. Stauffer, “Cargill says to open Brazil plant this month,” Reuters, 

24 August 2012; “Darwin biofuel plant inches closer,” Energy 

Business News, 12 March, 2013, at www.energybusinessnews. 

com.au. 

101 R.D. White, “California leads nation in advanced bio-fuel companies, 

report says,” Los Angeles Times, 7 February 2013. 

102 Matthew L. Wald, “Court Overturns E.P.A.’s Biofuels Mandate,” 

New York Times, 25 January 2013. 

103 EPA, “2012 RFS2 Data,” www.epa.gov/otaq/fuels/rfsdata 

/2013emts.htm, updated 7 April 2013; 1,024 gallons were sold, 

per Wald, op. cit. note 102. 

104 ETA-Florence Renewable Energies, “Industry leaders to support 

‘second generation’ biofuels in all EU transport sectors,” 4 

February, 2013, at www.sustainablebiofuelsleaders.com. The 

European Commission is to support biofuels by incentives under 

the Renewable Energy Directive, per European Commission, 

“Proposal for a Directive of the European Parliament and of the 

Council amending Directive 98/70/EC relating to the quality of 

petrol and diesel fuels and amending Directive 2009/28/EC on the 

promotion of the use of energy from renewable sources (Brussels: 

17 October 2012). 

105 Ecogeneration, “ARENA funding for biofuel technologies,” 

2013, 3 March 2013, at http://ecogeneration.com.au/news/ 

arena_funding_for_biofuel_technologies/080328; Bellona, 

“Initiative to support second generation biofuels launched 

in Brussels,” 8 February 2013, at www.bellona.org/articles/ 

articles_2013/1360345990.35. 

106 Kari Williamson, “IOGEN Energy and Shell scrap Canadian biofuel 

project,” RenewableEnergyFocus.com, 2 May 2012. 

107 Required volumes for advanced biofuel sales volumes are 

stipulated within the 2007 Renewables Fuel Mandate (aimed at 

increasing the shares of advanced biofuels in gasoline and diesel 

blends each year); it requires producers to generate a specific 

quantity of cellulosic biofuel each year or to purchase renewable 

fuel credits to meet the obligation. The ruling stated that the 

EPA optimistically set the requirement for 2012 too high, and 

commercial production could not meet the quota and likely would 

not do so for several years. Future volume requirements had not 

yet been set by early 2013, and the ruling left the 2013 quota in 

doubt; however, the larger category of advanced biofuels was left 

intact, from Lawrence Hurley, “Court Faults EPA Over Cellulosic 

Standards,” E&E News, 25 January 2013; Wald, op. cit. note 102; 

and Andrew Harris and Mark Drajem, “EPA Cellulosic Biofuel 

Regulation Rejected by Appeals Court,” RenewableEnergyWorld. 

com, 29 January 2013. 

108 SkyNRG is a Dutch company originally formed by KLM and Air 

France in 2009. “Boeing, Airbus and Embraer to Collaborate on 

Aviation Biofuel Commercialization,” press release (Geneva: 22 

March 2012; Z. Yifei, “Could China’s Gutter Oil Be Used to Save 

the Environment?” International Business Times, 11 July 2012. 

Geothermal Heat AND POWER 

1 Estimates for direct use of geothermal energy in 2011 are based 

on values for 2010 (50.8 GWth of capacity providing 121.6 TWh 

of heat), from John W. Lund, Derek H. Freeston, and Tonya L. 

Boyd, “Direct Utilization of Geothermal Energy: 2010 Worldwide 

Review,” in Proceedings of the World Geothermal Congress 2010, 

Bali, Indonesia, 25–29 April 2010; updates from John Lund, Geo- 

Heat Center, Oregon Institute of Technology, personal communications 

with REN21, March, April, and June 2011. Since GHP use 

is growing much faster than other direct-use categories, historical 

average annual growth rates for capacity and energy-use values 

for nine sub-categories of direct heat use were calculated for the 

years 2005–10 and used to project change for each category. 

The resulting weighted average annual growth rate for direct-heat 

use operating capacity is 13.8%, and for thermal energy use is 

11.6%. The resulting estimated aggregate average capacity factor 

is 26.8%. 

2 Lund, Freeston, and Boyd, op. cit. note 1; updates from Lund, op. 

cit. note 1. 

3 Ibid. 

4 Two-thirds based on 64% from Lund, Freeston, and Boyd, op. cit. 

note 1; updates from Lund, op. cit. note 1. 

5 Data for China, Sweden, Turkey, and Japan are for 2010, from 

Lund, Freeston, and Boyd, op. cit. note 1; updates from Lund, 

op. cit. note 1; United States from U.S. Energy Information 

Administration, Monthly Energy Review (Washington, DC: March 

2013), Table 10.1 (Production and Consumption by Source), 

Table 10.2c (Consumption: Electric Power Sector), and Table 

A6 (Approximate Heat Rates for Electricity and Heat Content 

of Electricity). Based on total geothermal energy consumption 

of 227 trillion Btu less 163 trillion Btu for electricity generation, 

yielding 64 trillion Btu for direct use, or 18,757 GWh. Iceland from 

Orkustofnun, Energy Statistics in Iceland 2012 (Reykjavik: 2013). 

Based on 42.2 PJ total geothermal energy use, of which 61%, or 

7,156 GWh, is direct use. 

6 Lund, Freeston, and Boyd, op. cit. note 1. 

7 Orkustofnun, op. cit. note 5. 

8 Electricity generated by CHP unit drives the electric heat pump, 

allowing for heating and cooling of space and high levels of 

efficiency, per Chris Webb, “Developers Warm to Small-Scale 

Geothermal,” RenewableEnergyWorld.com, 11 September 

2011. Note that some regard the net thermal contribution of 

heat pumps as an efficiency improvement in the heating and 

cooling use of electricity rather than a portion of the thermal 

energy balance. This appears to be the convention in Sweden; 

see Energimyndigheten (Swedish Energy Agency), Energiläget 

2011 (Stockholm: November 2011), p. 67. But the cooling load 

is not always “considered as geothermal” because heat is 

discharged into the ground or groundwater (see, for example, 

Lund, Freeston, and Boyd, op. cit. note 1). Nonetheless, the net 

thermal contribution made possible by the use of heat pumps is 

equally valid whether the desired service is cooling or heating, so 

the distinction is unnecessary for the purpose of quantifying the 

contribution of GHPs. 

9 Doubled from Lund, Freeston, and Boyd, op. cit. note 1; updates 

from Lund, op. cit. note 1. 

10 Europe’s total was 13,998.1 MWth, Sweden’s was 4,314.2 MWth, 

followed by Germany (3,000 MWth), France (1,785.3 MWth), and 

Finland (1,372.5 MWth), per EurObserv’ER, The State of Renewable 

Energies in Europe 2012 (Paris: 2012), p. 51. 

11 “Small-scale Renewables: Big Problem, Small Solution,” in REW 

Guide to North American Renewable Energy Companies 2013, 

supplement to Renewable Energy World Magazine, March-April 

2013, pp. 18–24. 

12 As of late 2012, the system provided cooling for 47 buildings and 

heat for 22, per ibid., pp. 18–24. 

13 Total global installed capacity in 2012 of 11.65 GW based on 


Association (GEA) (unpublished), provided by Benjamin Matek, 

GEA, personal communication with REN21, May 2013. Estimate 

for geothermal electricity generation of 72 TWh based on the 

global average capacity factor for geothermal generating capacity 

in 2010 (70.44%), derived from 2010 global capacity (10,898 MW) 

and 2010 global generation (67,246 GWh), see Ruggero Bertani, 

“Geothermal Power Generation in the World, 2005–2010 Update 

Report,” Geothermics, vol. 41 (2012), pp. 1–29. Calculation is 

based on estimated 2012 year-end capacity. The International 

02 


ENDNOTES 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Geothermal Heat AND POWER 

Energy Agency (IEA) puts geothermal generation at 71 TWh in 

2011, IEA, Medium-Term Renewable Energy Market Report 2012 

(Paris: 2012), p. 144 and Table 80. 

14 The global capacity estimate of 11.65 GW is based on a global 

inventory of geothermal power plants, per GEA, op. cit. note 13. 

Estimated global capacity additions in 2012 were 300 MW as 

noted in this section. 

15 Global inventory of geothermal power plants, per GEA, op. cit. 

note 13, including new installations in 2012 as noted in this 

section. 

16 GEA, “Geothermal Industry Ends 2012 on a High Note,” press 

release (Washington, DC: 18 December 2012); GEA, 2013 Annual 

US Geothermal Power Production and Development Report 

(Washington, DC: April 2013). The GEA revised the total installed 

capacity for 2011 by 128 MW from 3,111 MW to 3,239 MW for a 

total of 3,386 by early 2013. 

17 The project was commissioned by Enel Green Power. GEA, 

“Geothermal Industry Ends 2012...,” op. cit. note 16. 

18 “POWER Magazine Announces Renewable Top Plant Award 

Winners,” PRNewswire.com, 3 December 2012. 

19 GEA, “U.S. Geothermal Sees Continued Steady Growth in 2012,” 

press release (Washington, DC: 26 February 2013). 

20 Sumitomo Corporation, “Completion of construction of the 

Ulubelu geothermal power station for Indonesia’s state-owned 

power company, PT. PLN (Persero),” press release (Tokyo: 7 

November 2012). 

21 Support includes USD 300 million in financing from the World 

Bank and a USD 6.95 million technical assistance grant from 

the government of New Zealand, per World Bank, “Pertamina 

Geothermal Energy (PGE) prepares a globally unprecedented 

expansion of geothermal renewable energy with assistance from 

the World Bank and Government of New Zealand,” press release 

(Washington, DC: 18 June 2012); other financial backing is 

expected from the Asian Development Bank, per Anthony J. Jude, 

Asian Development Bank, personal communication with REN21, 

April 2013. 

22 Tito Summa Siahaan, “Stalled Geothermal Projects in Indonesia to 

Get Funding Injection,” Jakarta Globe, 20 March 2013. 

23 AECOM New Zealand Limited, Geothermal Fund Report, prepared 

for Asian Development Bank (Auckland: 21 October 2011). See 

Reference Table R12 for more information on Indonesia's targets. 

24 Wasti Atmodjo, “Bali to have adequate electricity supply: 

Minister,” Jakarta Post, 4 September 2012. 

25 PennEnergy, “Phase II expansion at San Jacinto-Tizate geothermal 

project begins operation,” 2 January 2013, at www.pennenergy. 

com. 

26 Plant was completed by the Green Energy Group, from LX Richter, 

“Geothermal Development Associates commissions Kenya wellhead 

plant,” ThinkGeoenergy.com, 24 February 2012, and from 

Green Energy Group, “Green Energy Group completed delivery 

for installation in Kenya,” 19 June 2012, at http://geg.no/news/ 

green-energy-group-completed-delivery-installation-kenya. 

27 Eric Ombok, “Kenya Geothermal Set to Replace Hydro with Major 

Development Plans,” RenewableEnergyWorld.com, 16 November 

2012. 

28 “Ormat Technologies Commence Operation of 36 MW Geothermal 

Power Plant in Kenya,” PRNewswire.com, 2 May 2013. 

29 John Muchira, “KenGen pursuing PPP Plan in bid to exploit geothermal 

activity,” Engineering News (South Africa), 23 November 

2012, at www.engineeringnews.co.za. 

30 Enel, “Enel Green Power: Start-up of Rancia 2, geothermal power 

plant in Tuscany completely refurbished,” press release (Rome: 

30 May 2012). 

31 Enel, “Enel Green Power: Work begins on the ‘Bagnore 4’ geothermal 

power plant in Tuscany,” press release (Rome: 18 March 

2012). Exchange rates in this section are as of 31 December 2012. 

32 Frank Kanyesigye, “Geothermal drilling starts next month,” The 

New Times (Rwanda), 27 March 2013, at www.newtimes.co.rw. 

33 World Bank, “World Bank Calls for Global Initiative to Scale Up 

Geothermal Energy in Developing Countries,” press release 

(Washington, DC: 6 March 2013). The Bank’s geothermal financing 

has expanded in recent years and now represents almost 10% 

of its total renewable energy lending. 

34 Jens Drillisch, KfW Entwicklungsbank, Frankfurt am Main, 

personal communication with REN21, April 2013. 

35 Benjamin Matek, GEA, Washington, DC, personal communication 

with REN21, April 2013. 

36 LX Richter, “Local opposition to geothermal projects in national 

parks in Japan,” ThinkGeoenergy.com, 16 August 2012. 

37 LX Richter, “Japan sets feed in tariff for geothermal at $0.22 to 

$.51 per kWh,” ThinkGeoenergy.com, 22 April 2012. 

38 “El Salvador to add 689 MW of wind energy, solar power and 

geothermal,” Evwind.es, 12 May 2012; U.S. Geothermal Inc., “U.S. 

Geothermal Provides Corporate Update,” press release (Boise, ID: 

20 April 2012); A. Ormad, “Approved 20 geothermal exploration 

areas in Chile,” ThinkGeoenergy.com. 

39 “Montserrat Says Progress Being Made on Geothermal Project,” 

Caribbean Journal, 8 February 2013, at www.caribjournal.com. 

40 Peter Richards, “Dominica Sees Geothermal as Key to Carbon- 

Negative Economy,” Inter Press Service, 22 January 2013. 

41 United States from, for example, Geo-Heat Center, “Geothermal 

Direct Use Directory of Services and Equipment,” http://geoheat. 

oit.edu/vendors.htm; Europe from EurObserv’ER, Ground-source 

Heat Pump Barometer, No. 205 (Paris: September 2011). 

42 EurObserv’ER, op. cit. note 41; for the United States, see list 

of GeoExchange Heat Pump Manufacturers at GeoExchange, 

“Geothermal Heat Pump Industry Web Resources,” www. 

geoexchange.org, viewed 4 May 2013. 

43 Ruggero Bertani, “Geothermal Power Generation in the World, 

2005–2010 Update Report,” Geothermics, vol. 41 (2012), pp. 

1–29. 

44 REN21, Renewables 2012 Global Status Report (Paris: 2012), p. 

41. 

45 Supported by the Department of Energy, per GEA, op. cit. note 16; 

Calpine Corporation, “NW Geysers Enhanced Geothermal System 

Demonstration Project,” PowerPoint presentation, 2 November 

2012, at www.geysers.com/media/11.02.2012 EGS_Community 

Update Presentation.pdf. 

46 AltaRock Energy Inc., “AltaRock Energy Announces Successful 

Multiple-zone Stimulation of Well at the Newberry Enhanced 

Geothermal Systems Demonstration,” press release (Seattle: 22 

January 2013). 

47 Ormat, “Success with Enhanced Geothermal Systems Changing 

the Future of Geothermal Power in the U.S.: DOE, Ormat and 

GeothermEx Collaboration Produces Electricity Using In-field 

EGS,” press release (Reno, NV: 10 April 2013). 

48 GEA, “2013 Annual...,” op. cit. note 16. 

49 Geothermal brine from ibid. Legislation put forward in California 

aimed to facilitate such mining by making it exempt from certain 

state and federal regulations, per “California Bill Helps Pave Way 

For Lithium Gold Rush,” Forbes, 6 July 2012. 

50 Carbon Recycling International Web site, www.carbonrecycling.is. 

51 Marc Favreau, “Geothermal Industry Continues to Struggle for 

Acceptance,” RenewableEnergyWorld.com, 16 August 2011; 

Meg Cichon, “Geothermal Heating Up in Nevada Despite Frigid 

Industry Climate,” RenewableEnergyWorld.com, 18 January 2012. 

52 For example, plant designs need to be flexible and capable of 

accommodating a potentially large range of steam pressures 

and mass flows, per “Geothermal Turning Up the Heat at Los 

Humeros,” RenewableEnergyWorld.com, 16 February 2011. 

53 U.S. Department of Energy, Office of Energy Efficiency and 

Renewable Energy, Geothermal Risk Mitigation Strategies Report 

(Washington, DC: Geothermal Program, 15 February 2008). 

144

Hydropower 

1 International Hydropower Association (IHA) estimates a global 

hydropower capacity addition of 26–30 GW during 2012 and 

cumulative capacity of 955 GW at the end of 2011, per IHA, 

London, personal communication with REN21, February 2013. 

The International Journal on Hydropower & Dams’ Hydropower & 

Dams World Atlas 2012 (Wellington, Surrey, U.K.: 2012) estimates 

installed hydropower capacity in 2011 at more than 975 GW, 

including a limited number of pumped storage facilities. Hydro 

Equipment Association (HEA) has documented a total of 35 GW 

of capacity installations in 2012, per HEA, Brussels, personal 

communication with REN21, April 2012. Based on these figures, a 

best estimate of non-pumped storage hydro capacity at year-end 

2012 would be about 990 GW. 

2 Estimate is based on global capacity of 990 GW at the end of 

2012, and a total of 515 GW for the top five countries including 

the addition of 19.4 GW in 2012 for these five countries (China 

at 15.51 GW, Brazil at 1.86 GW, United States estimated at 

99 MW, Canada at 968 MW, and Russia at 999 MW). Figure 9 

based on the following sources: China from China Electricity 

Council, http://tj.cec.org.cn/fenxiyuce/yunxingfenxi/yuedufenxi/2013-01-18/96374.html, 

viewed April 2013; State 

Electricity Regulatory Commission, National Bureau of Statistics, 

National Energy Administration, Energy Research Institute, and 

China National Renewable Energy Center, “China Renewables 

Utilization Data 2012,” March 2013, at www.cnrec.org.cn/english/ 

publication/2013-03-02-371.html. Total installed capacity is 

listed as 248.9 GW, of which 20.31 GW is pumped storage, yielding 

net hydro capacity of 228.6 GW. For Brazil, an estimated 1,857 

MW was added in 2012, per Brazil National Agency for Electrical 

Energy (ANEEL), “Fiscalização dos serviços de geração,” at www. 

aneel.gov.br/area.cfm?idArea=37. Total installed large hydropower 

capacity at the end of 2012 was 79.7 GW and small hydro 

capacity was 4.3 GW, per ANEEL, “Capacidade de geração em 

2012 chega a 121,1 mil Megawatts,” press release (Brasilia: 18 

February 2013). U.S. total capacity at the end of 2011 was 78,194 

MW with 99 MW of anticipated capacity additions for 2012, per 

U.S. Energy Information Administration (EIA), Electric Power 

Annual (Washington, DC: January 2013), Tables 4.3 and 4.5. 

Canada capacity additions in 2011 of 1.34 GW from Marie-Anne 

Sauvé, Hydro-Québec, and from Domenic Marinelli, Manitoba 

Hydro, personal communications via IHA, April 2012; additions 

of 968 MW for 2012 from Canadian Broadcasting Corporation, 

“Wuskwatim Power Station Officially Opens,” 5 July 2012, at www. 

cbc.ca, and from Hydro-Québec, Annual Report 2012 (Montreal: 

2012), p. 6; existing capacity in 2010 of 75.08 GW from Statistics 

Canada, “Installed generating capacity, by class of electricity 

producer,” Table 127-0009, at http://www5.statcan.gc.ca. Russia 

from: RusHydro, “RusHydro Launches New Hydropower Unit at 

the Boguchanskaya Hydropower Plant,” press release (Moscow: 

22 January 2013); System Operator of the Unified Energy System 

of Russia, “Boguchan plant produced its first billion kilowatt-hours 

of electricity” [translated from Russian], 21 March 2013, at 

www.so-ups.ru/index; capacity of 46 GW on 1 January 2013 

from System Operator of the Unified Energy System of Russia, 

“Operational Data for December 2012,” www.so-ups.ru/fileadmin/ 

files/company/reports/ups-review/2013/ups_review_jan13.pdf. 

3 U.S. generation from EIA, Electric Power Monthly (Washington, 

DC: March 2013), Table 1.1. Canada generation from Statistics 

Canada, ”Electric Power Generation, by class of electricity 

producer,” Table 127-0002, at http://www5.statcan.gc.ca/cansim. 

4 Global estimate for 2012 based on the following sources: preliminary 

estimates from International Energy Agency (IEA), Medium- 

Term Renewable Energy Market Report 2013 (Paris: OECD/IEA, 

forthcoming 2013); IHA, op. cit. note 1; 2011 global hydropower 

generation from BP, Statistical Review of World Energy 2012 

(London: 2012) (expressed in terms of average thermal equivalence 

assuming a 38% conversion efficiency in a thermal power 

plant at 791.5 Mtoe, which translates to 3,498 TWh). This value, 

escalated at the average annual change (6.8%) of aggregate 

hydropower output from 2011 to 2012 for seven top producers 

(China, Brazil, Canada, United States, Russia, Norway, EU, and 

India), would suggest a global estimated value of 3,736 TWh for 

2012. Country generation data from the following sources: China 

Electricity Council, op. cit. note 2; National Electrical System 

Operator of Brazil (ONS), “Geração de Energia,” www.ons.org. 

br/historico/geracao_energia.aspx; Statistics Canada, Table 

127-0002, op. cit. note 3; EIA, op. cit. note 3; System Operator of 

the Unified Energy System of Russia, monthly operational data, 

www.so-ups.ru/index.php?id=tech_disc; European Commission, 

Eurostat, http://epp.eurostat.ec.europa.eu; Statistics Norway, 

www.ssb.no; Government of India, Ministry of Power, Central 

Electricity Authority, “Monthly Generation Report,” www.cea. 

nic.in/monthly_gen.html (includes only generation from facilities 

larger than 25 MW). 

5 Figure 10 based on the following sources: China capacity of 15.51 

GW from China Electricity Council, op. cit. note 2; Turkey from 

“Hydropower Licenses Reign in 2011,” Hurriet Daily News, 24 

October 2012, at www.hurriyetdailynews.com; year-end capacity 

in 2011 of 18.98 GW from Turkish Energy Market Regulatory 

Authority (EPDK), Turkish Electricity Ten-Year Capacity Projection 

(2012-2021) (Ankara: July 2012), Table 2, at www.epdk.org.tr; 

2012 capacity addition of 2,031 MW from HEA, Brussels, personal 

communication with REN21, May 2013; for Brazil, an estimated 

1,857 MW was added in 2012, per ANEEL, “Fiscalização dos 

serviços de geraçãoat,” op. cit. note 2; total installed large hydro 

capacity at end-2012 was 79.7 GW, and small hydro capacity was 

4.3 GW, per ANEEL, “Capacidade de geração em 2012 chega 

a 121,1 mil Megawatts,” op. cit. note 2; for Vietnam, 1,852 MW 

of new hydropower capacity was commissioned in 2012, with 

year-end capacity of 12,951 MW, per National Electricity Center 

of Vietnam, “Báo cáo tông kêt năm 2012,” www.nldc.evn.vn/ 

News/7/661/Bao-cao-tong-ket-nam-2012.aspx, updated 19 

February 2013; 2011 year-end capacity was merely 10,182 MW, or 

2,769 MW less than 2012 year-end capacity, per idem, “Báo cáo 

năm 2011,” www.nldc.evn.vn/News/7/371/Bao-cao-nam-2011. 

aspx, updated 21 February 2012; Russia from RusHydro, op. cit. 

note 2, and from System Operator of the Unified Energy System 

of Russia, “Boguchan plant produced…,” op. cit. note 2; capacity 

of 46 GW on 1 January 2013 from System Operator of the Unified 

Energy System of Russia, “Operational Data for December 2012,” 


6 China Electricity Council, op. cit. note 2. Total installed capacity 

is listed as 248.9 GW, of which 20.31 GW is pumped storage, 

yielding net hydro capacity of 228.6 GW. 

7 China Electricity Council, op. cit. note 2. The increase of 864.1 

TWh was reportedly 29.3% higher than the previous year. 

8 Alstom, “Alstom successfully delivers the first unit of the 

Xiangjiaba hydropower plant,” press release (Levallois-Perret 

Cedex, France: 11 June 2012). 

9 “China Reports first big unit installed at 6,400-MW Xiangjiaba,” 

HydroWorld.com, 16 July 2012. 

10 “China’s Three Gorges hydroelectric project sets new production 

record,” HydroWorld.com, 10 January 2013. Some 1.4 million 

people were relocated during dam construction; since the 

reservoir reached its full height in 2010, the threat of landslides 

has increased and raised the prospect that tens of thousands of 

people may need to be moved again, from “China’s Three Gorges 

Dam Reaches Operating Peak,” BBC News, 5 July 2012, and 

from Sui-Lee Wee, “Thousands Being Moved from China’s Three 

Gorges – Again,” Reuters, 23 August 2012. 

11 Government of China, “IV. Vigorously Developing New and 

Renewable Energy,” in China’s Energy Policy 2012 (Beijing: 2012), 

at www.gov.cn/english/official/2012-10/24/content_2250497_5. 

htm. China’s Energy Policy 2012 says: “On the condition that the 

ecological environment is protected and resettlements of local 

people affected are properly handled, China will energetically 

develop hydropower. By integrating hydropower development with 

promotion of local employment and economic development, the 

Chinese government aims to ‘develop local resources, stimulate 

local economic development, improve the local environment and 

benefit local people.’ The country strives to improve its resettlement 

policies regarding local people affected by hydropower 

projects, and perfect the benefit-sharing mechanism. China 

will strengthen ecological-protection and environmental-impact 

assessment, strictly implement measures to protect the 

environment of existing hydropower stations, and improve the 

comprehensive utilization level and eco-environmental benefits of 

water resources. In accordance with rational river basin planning 

for hydropower development, China will speed up the construction 

of large hydropower stations on key rivers, develop medium- and 

small-sized hydropower stations based on local conditions, and 

construct pumped-storage power stations in appropriate circumstances. 

The country’s installed hydropower generating capacity 

is expected to reach 290 million kW by 2015.” Sidebar 3 from the 

following sources: 2,000 years from U.S. Department of Energy, 

Office of Energy Efficiency & Renewable Energy, “History of 

Hydropower,” http://www1.eere.energy.gov/water/hydro_history. 

html, updated 19 September 2011; specific applications from A. 

Kumar et al., “Hydropower,” Chapter 5 in O. Edenhofer et al., eds., 

02 


ENDNOTES 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Hydropower 

IPCC Special Report on Renewable Energy Sources and Climate 

Change Mitigation (Cambridge, U.K. and New York: Cambridge 

University Press, 2012), p. 484; supporting variable renewables 

from IHA, personal communication with REN21, 25 January 

2013, and from Andreas Lindström and Jakob Granit, Large-Scale 

Water Storage in the Water, Energy and Food Nexus: Perspectives 

on Benefits, Risks and Best Practices (Stockholm: Stockholm 

International Water Institute, August 2012), p. 4; environmental 

and social impacts from World Commission on Dams, Dams 

and Development: A New Framework for Decision Making. The 

Report of the World Commission on Dams (London: Earthscan, 

2000), from Kumar et al., op. cit. this note, p. 463, and from IHA, 

op. cit. this note; maximise positive impacts and Norway from 

Tormod Andrei Schei, Statkraft, personal communication with 

REN21, 20 February 2013; fish-friendly technologies from IEA, 

“Technology Roadmap: Hydropower” (Paris: 2012); optimising 

environmental flows from J.H. Halleraker et al., “Application of 

multi scale habitat modelling techniques and ecohydrological 

analysis for optimized management of a regulated national salmon 

watercourse in Norway,” in Proceedings from the final meeting 

in Silkeborg, Denmark. COST 626, European Aquatic Modelling 

Network, May 2005; new directions for project planning, no-go 

project areas, and protection, from IHA, op. cit. this note; Laos 

from I. Matsumoto, Expanding Failure: An Assessment of the 

Theun-Hinboun Hydropower Expansion Project’s Compliance with 

Equator Principles and Lao Law (BankTrack; FIVAS, International 

Rivers, Les Amis de la Terre; and Justice and International Mission 

Unit, Uniting Church in Australia, 2009); International Finance 

Corporation, Performance Standards on Environmental and Social 

Sustainability (Washington, DC: 2012). 

12 “Turkey Turns to Hydropower,” Deutsche Welle, 25 September 

2012. 

13 “Hydropower Licenses Reign in 2011,” op. cit. note 5; year-end 

capacity in 2011 of 18.98 GW from EPDK, op. cit. note 5; 2012 

capacity addition of 2,031 MW from HEA, op. cit. note 5. 

14 Susanne Güsten, “Construction of Disputed Turkish Dam 

Continues,” New York Times, 27 February 2013. 

15 By end-2012, total hydro capacity in Brazil was reported as 84 

GW, including 4.3 GW of small hydro capacity. An estimated 1,857 

MW was added in 2012, per ANEEL, “Capacidade de geração...,” 


16 ANEEL, “Fiscalização dos serviços de geração,” op. cit. note 2; 

Alcoa, “Alcoa participates in the Inauguration of Estreito Hydro 

Power Plant in Brazil,” press release (New York: 25 October 2012); 

“Brazil’s 362-MW Maua hydropower project gets permit after 

11-year delay,” HydroWorld.com, 24 October 2012; Santo Antonio 

Energia, “Installed capacity of 3,150 MW,” at www.santoantonioenergia.com.br. 

17 GDF Suez and International Power, “Expansion of Jirau Hydro 

Project in Brazil,” press release (London: 18 August 2011); “Ibama 

grants license for 3,750-MW Jirau hydropower plant,” HydroWorld. 

com, 24 October 2012. 

18 “Hydro Power Latin America,” RenewableEnergyWorld.com, 

21 June 2012. In August 2012, the Supreme Court reversed a 

lower court’s decision to suspend Belo Monte due to insufficient 

consultation with indigenous people, per Michael Harris, 

“Suspension of Brazil’s 11.2-GW Belo Monte Overturned,” 

RenewableEnergyWorld.com, 29 August 2012. 

19 “Brazil’s Itaipu hydropower plant sets new production record in 

2012,” HydroWorld.com, 7 January 2013. 

20 An estimated 1,852 MW of new hydropower capacity was 

commissioned in 2012, with year-end capacity being 12,951 

MW, per National Electricity Center of Vietnam, “Báo cáo tâng kêt 

năm 2012,” op. cit. note 5; 2011 year-end capacity was merely 

10,182 MW, or 2,769 MW less than 2012 year-end capacity, per 

idem, “Báo cáo năm 2011,” op. cit. note 5; largest from “Son La 

Hydropower Plant-project of the century,” Vietnamplus.vn, 26 

February 2013. 

21 RusHydro, op. cit. note 2; System Operator of the Unified Energy 

System of Russia, “Boguchan plant produced...,” op. cit. note 2; 

2012 capacity of 46 GW on 1 January 2013 from System Operator 

of the Unified Energy System of Russia, “Operational Data for 

December 2012,” op. cit. note 2. 

22 RusHydro, www.sshges.rushydro.ru/press/news-materials/ 

presskit/company/. 

23 HEA, Brussels, personal communication with REN21, May 2013. 

Also, RusHydro reported installing 3,699 MW in 2012 (see http:// 

minenergo.gov.ru/press/company_news/14093.html), but it 

appears that some of this is repowering. 

24 Federal Government of Mexico, Ministry of Energy, electricity 

statistics, at www.energia.gob.mx; “CFE launches 750MW La 

Yesca hydro plant,” www.bnamericas.com, 7 November 2012. 

25 Power Machines, “The second hydropower unit of La Yesca HPP is 

put onto operation,” press release (Moscow: 20 December 2012). 

26 Canadian Broadcasting Corporation, op. cit. note 2; Hydro- 

Québec, op. cit. note 2, p. 6. 

27 Additions of large (>25 MW) hydropower facilities of about 591 

MW from Central Electricity Authority of India, Monthly Report of 

Power Sector Reports (Executive Summary), at www.cea.nic.in/ 

executive_summary.html; additions of small hydropower facilities 

of 157 MW and year-end capacity of about 3.5 GW from Ministry of 

New and Renewable Energy, Annual Report 2012-2013, at http:// 

mnre.gov.in/mission-and-vision-2/publications/annual-report-2/ 

(note that these cover February through January of following 

year); total year-end capacity for large facilities of 39.34 GW from 

Central Electricity Authority of India, “List of H.E. Stations in the 

Country With Station Capacity Above 25 MW,” www.cea.nic.in/ 

archives/hydro/list_station/dec12.pdf. 

28 Alstom, “Alstom to supply hydroelectric equipment for the Grand 

Renaissance dam in Ethiopia,” press release (Levallois-Perret 

Cedex, France: 7 January 2013). 

29 “Ethiopia begins tests on Sudan power project,” African Review of 

Business and Technology, 17 December 2012, at www.africanreview.com. 

30 The World Bank and the African Development Fund provide 

funding for this project. African Development Bank Group, 

Ethiopia-Kenya Electricity Highway, Project Appraisal Report (Tunis: 

September 2012). 

31 Jeremy M. Martin and Juan Carlos Posadas, “Central America’s 

Electric Sector: The Path to Interconnection and a Regional 

Market,” Journal of Energy Security (Institute for the Analysis 

of Global Security), 13 August 2012; Power Engineering 

International, “Feature: Central America’s landmark interconnection 

project,” 13 March 2013, at www.powerengineeringint.com. 

32 CDM Policy Dialogue, Climate Change, Carbon Markets and the 

CDM: A Call to Action – Report of the High-Level Panel on the CDM 

Policy Dialogue (Luxembourg: 2012), p. 2; Mathew Carr, “Carbon 

Markets Threatened if EU Backload Plan Fails, CEPS Says,” 

Bloomberg.com, 11 February 2013. 

33 United Nations Framework Convention on Climate Change, 

“UNFCCC expands efforts to increase regional distribution of 

clean development mechanism projects,” press release (Bonn: 13 

February 2013). 

34 United Nations Environment Programme Risø Centre, CDM/JI 

Pipeline Analysis and Database, “CDM Pipeline overview,” www. 

cdmpipeline.org/publications/CDMPipeline.xlsx. The spreadsheet 

shows 2,269 hydropower projects “At Validation” or “Registered” 

and of those, 20 projects are in Africa and 1,377 in China. 

35 HEA, Brussels, personal communication with REN21, March 

2012. 

36 Ibid. 

37 “Renewable energy project monitor,” RenewableEnergyFocus. 

com, 21 November 2012. 

38 IHA, op. cit. note 1. 

39 “Uganda set to open 250-MW Bujagali hydropower plant,” 

HydroWorld.com, 26 September 2012. 

40 “IFC and Korean company to develop hydropower in Laos,” Lao 

Voices, 20 July 2012, at http://laovoices.com. 

41 “Deal worth $150m signed to build hydro plant,” Viet Nam News, 

23 October 2012, at http://vietnamnews.vn. 

42 Alstom, “Tianjin Alstom Hydro Co., Ltd,” www.alstom.com/china/ 

locations/hydro/; Power Machines, “Hydraulic turbines,” www. 

power-m.ru/eng/products/. 

43 “Alstom boosts hydro power investment in China,” China Daily, 2 

August 2012. 

44 Alstom, “Alstom inaugurates its new global hydropower technology 

centre in Grenoble,” press release (Levallois-Perret Cedex, 

France: 1 February 2013). 

45 Alstom, “Alstom and RusHydro start construction of hydropower 

equipment manufacturing plant in Ufa, Russia,” press release 

(Levallois-Perret Cedex, France: 14 May 2012). 

46 Voith Hydro, Annual Report 2012 (York, PA: 2012), pp. 87–88. 

146

47 IMPSA, “Corporate Presentation,” 2012, at www.impsa.com/es/ 

ipo/Corporate Presentation/Corporate Presentation.pdf. 

48 Toshiba, “Toshiba Constructing Cutting Edge Global Power 

Engineering Center,” press release (Tokyo: 27 November 2012). 

49 Voith Hydro, op. cit. note 46, p. 88; Andritz, “Research and 

Development,” www.andritz.com/hydro/hy-research-and-development.htm. 

50 “Consortium wins European Commission grant to show feasibility 

of pumped-storage technologies,” HydroWorld.com, 18 

December 2012. 

51 HEA, op. cit. note 1. 

Ocean Energy 

1 Total existing (not pending) ocean energy installed capacity in 

2011 was 526,704 kW, per Ocean Energy Systems (OES), Annual 

Report 2011 (Lisbon: 2011), Table 6.2. OES, also known as the 

Implementing Agreement on Ocean Energy Systems, functions 

within a framework created by the International Energy Agency. 

2 Ocean Renewable Power Company, “America’s First Ocean 

Energy Delivered to the Grid,” press release (Portland, ME: 13 


3 Tidal Today, “Tidal emerges as first US grid connected ocean 

energy source,” 26 February 2013, at http://social.tidaltoday.com. 

4 AW Energy, “Waveroller concept,” http://aw-energy.com/ 

about-waveroller/waveroller-concept, and “Project Surge,” http:// 

aw-energy.com/projects/project-surge/; Toby Price, “Finnish 

wave energy developer on a roll,” Renewable Energy Magazine, 22 

March 2012. 

5 Capacity values from OES, “Ocean Energy in the World,” www. 

ocean-energy-systems.org/ocean_energy_in_the_world/; OES, 

Annual Report 2012 (Lisbon: 2012), Table 6.1; United Kingdom 

from renewableUK, “Wave & Tidal Energy,” at www.renewableuk. 

com/en/renewable-energy/wave-and-tidal/index.cfm. 

6 Kwanghee Yeom, Friends of the Earth Korea, personal communication 

with REN21, March 2013. 

7 Ocean Power Technologies (OPT), “Ocean Power Technologies 

Awarded FERC license for Oregon Wave Power Station,” press 

release (Pennington, NJ: 20 August 2012); OPT, “Ocean Power 

Technologies to Deploy Reedsport PowerBuoy in Spring 2013,” 

press release (Pennington, NJ: 27 September 2012). 

8 Verdant Power, “The RITE Project,” http://verdantpower.com/ 

what-initiative/. 

9 Leo Hickman, “Abandoned Severn Tidal Power Project to Be 

Reconsidered,” The Guardian (U.K.), 20 August 2012. 

10 Tildy Bayar, “Current Builds Behind Tidal Energy Take-off,” 

RenewableEnergyWorld.com, 26 March 2013. 

11 “Atlantis Completes First Narec Tidal Power Turbine Test,” 

RenewableEnergyFocus.com, 16 October 2012. 

12 Karen Dennis, U.K. Department of Energy & Climate Change, 

“United Kingdom country report,” in OES, Annual Report 2012, op. 

cit. note 5; Fiona Harvey, “Crown Estate to Invest £20m in Wave 

and Tidal Power,” The Guardian (U.K.), 16 January 2013. 

13 Eoin Sweeney, Sustainable Energy Authority of Ireland, “Ireland 

country report,” in OES, Annual Report 2012, op. cit. note 5. 

14 European Marine Energy Centre, “EMEC to Support Development 

of South Korean Marine Energy Centre,” press release (Orkney, 

Scotland: 17 August 2012). 

15 Clean Current, “Clean Current and Alstom Terminate Licensing 

Agreements,” 18 November 2012, at www.cleancurrent.com/ 

news. 

16 Alstom, “Alstom broadens its involvement in marine energy by 

acquiring a 40% equity stake in AWS Ocean Energy,” press release 

(Levallois-Perret Cedex, France: 22 June 2011). 

17 Andritz Hydro Hammerfest, “Hammerfest Strøm Becomes 

ANDRITZ HYDRO Hammerfest,” press release (Hammerfest, 

Norway: 19 April 2012). 

18 Andritz Hydro Hammerfest, “Tidal Turbine Powers Up in Orkney – 

Harnessing Scotland’s Tidal Energy a Step Closer,” press release 

(Hammerfest, Norway: 17 May 2012); ”Andritz obtains majority 

stake in ocean power manufacturer,” HydroWorld.com, 9 March 

2012. 

19 Marine Current Turbines (MCT) Web site, www.marineturbines. 

com; MCT, “Siemens Strengthens Its Position in Ocean Power,” 

press release (Camberley, Surrey, U.K.: 16 February 2012). 

20 MCT, “SeaGen celebrates its 5th Birthday in Strangford Lough,” 

press release (Camberley, Surrey, U.K.: 2 April 2013). 

21 Pelamis Wave Power, “Viking Wind Farm Approved,” press release 

(Edinburgh: 4 April 2012). 

22 ”Vattenfall, Pelamis Secure Last Site at European Marine Energy 

Centre,” HydroWorld.com, 19 March 2012. 

23 Elaine Maslen, “Meygen Lodges Plans for Tidal Array,” 27 July 

2012, at www.atlantisresourcescorporation.com. 

24 Atlantis Resources Corporation, “Atlantis Completes Narec 

Testing Programme,” press release (Blyth, Northumberland, U.K.: 

16 October 2012); Atlantis Resources Corporation, “Statement 

of Clarification on Recent MEAD Announcement,” press release 

(Blyth, Northumberland, U.K.: 4 March 2013). 

25 Atlantis Resources Corporation, “Canadian Government Supports 

Atlantis Resources Corporation Tidal Energy Project,” press 

release (Blyth, Northumberland, U.K.: 15 February 2013); tidal 

range from Government of Canada, Natural Resources Canada, 

“Discovering the Bay of Fundy’s Seafloor,” www.nrcan.gc.ca/ 

earth-sciences/about/organization/organization-structure/geological-survey-of-canada/7700, 

updated 1 March 2011. 

Solar Photovoltaics (PV) 

1 Based on data from Gaëtan Masson, European Photovoltaic 

Industry Association (EPIA) and International Energy Agency (IEA) 

Photovoltaic Power Systems Programme (IEA-PVPS), personal 

communications with REN21, February–May 2013; from IEA- 

PVPS, PVPS Report: A Snapshot of Global PV 1992-2012 (Paris: 

April 2013); from EPIA, Global Market Outlook for Photovoltaics 

2013-2017 (Brussels: May 2013), p. 13; and from national data 

sources cited throughout this section. Global capacity was a minimum 

of 96.5 GW, with some missing countries, from IEA-PVPS, 

op. cit. this note, and 102,156 MW from EPIA, op. cit. this note. 

EPIA data were used as the basis for calculating the total capacity 

number, adjusted according to national-level data used where 

taken from other sources. Note that data reported by both EPIA 

and IEA-PVPS are provided in direct current (DC) capacity. EPIA 

data include only systems connected to the grid and in operation 

(plus off-grid remote capacity). 

2 More than 29.4 GW added based on the following sources: 

Masson, op. cit. note 1; IEA-PVPS, op. cit., note 1; EPIA, op. cit. 

note 1; and national data sources cited throughout this section. 

Less capacity and higher shipments from Masson, op. cit. note 1. 

Estimates of capacity added are wide ranging, including 31.1 GW 

from EPIA, op. cit. note 1, p. 5; “Solarbuzz: PV demand reaches 

29 GW in 2012,” SolarServer.com, 21 February 2013; more than 

31 GW installed and over 27 GW connected to grids in 2012 from 

“IHS Report Forecasts Global PV to Exceed 35 GW in 2013,” 

SolarNovus.com, 8 April 2013; 30.9 GW added, up from 29.6 

GW in 2011, from Ron Pernick, Clint Wilder, and Trevor Winnie, 

Clean Energy Trends 2013, Clean Edge, March 2013; and 28.8 

GW from Shyam Mehta, “29th Annual Cell and Module Data 

Collection Results,” PV News, May 2013, p. 1. Figure 11 based on 

the following: data through 1999 from Paul Maycock, PV News, 

various editions; 2000–2010 data from EPIA, op. cit. note 1, p. 13; 

2011–2012 data from sources in Endnote 1. 

3 Estimate of 15% in 2011 from GTM Research, PV News, May 

2012; 13% in 2012 from Masson, op. cit. note 1. The thin film 

share dropped from 11.9% in 2010 to 11.3% in 2011, per Photon 

International, cited in EurObserv’ER, Photovoltaic Barometer 

(Paris: April 2012), p. 127. Thin film’s share of the market peaked 

in 2009 (at least for the 2001–11 period), according to data from 

Paula Mints, “12 Solar Power Myths and the Saving Grace of a 

Worthwhile Cause,” RenewableEnergyWorld.com, 10 December 

2012. 

4 The eight countries in 2012 include Australia (although final 

numbers may later fall just under 1 GW), Germany, China, Italy, 

the United States, Japan, France, and the United Kingdom, per 

Masson, op. cit. note 1. This was up from six in 2011, per EPIA, 

Market Report 2011 (Brussels: January 2012). 

5 Top markets from IEA-PVPS, op. cit. note 1, p. 11, from EPIA, op. 

cit. note 1, p. 5, and from national data sources cited throughout 

02 


ENDNOTES 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Solar Photovoltaics (PV) 

this section; leaders for total capacity from Masson, op. cit. note 

1, and from IEA-PVPS, op. cit. note 1. Note that China ranks third, 

ahead of the United States, per EPIA, op. cit. note 1, p. 13. Spain 

fell from fourth to sixth according to all sources in this note. 

6 This was up from eight in 2011; European countries were 

Germany, Italy, Spain, France, Belgium, the Czech Republic, the 

U.K., and Greece; Asian countries were China, India, and Japan, 

from EPIA, op. cit. note 1, and from IEA-PVPS, op. cit. note 1. 

7 Germany had 398 Watts per inhabitant, Italy 273 W, Belgium 241 

W, the Czech Republic 196 W, Greece 144 W, and Australia 105 

W, per EPIA, op. cit. note 1, pp. 15, 18. Some U.S. states also have 

relatively high capacity per inhabitant, including Arizona (167 W), 

Nevada (146 W), Hawaii (137 W), and New Jersey (110), per Solar 

Energy Industries Association (SEIA), “Solar Energy Facts: 2012 

Year-In-Review,” 14 March 2013, at www.seia.org. 

8 Capacity added from IEA-PVPS, op. cit. note 1, from Masson, op. 

cit. note 1, and from EPIA, “World’s Solar Photovoltaic Capacity 

Passes 100-Gigawatt Landmark After Strong Year,” press release 

(Brussels: 11 February 2013); year-end total from Masson, op. cit. 

note 1. EU-27 capacity at year’s end was 69.1 GW, per idem. 

9 Capacity additions for 2011 from IEA-PVPS, op. cit. note 1, and 

from EPIA, op. cit. note 1; 2011 share of market from Reinhold 

Buttgereit, “Editorial: Market Evolution,” February 2013, at www. 

epia.org, and from EPIA, op. cit. note 1, p. 14; first decline since 

2000 from EPIA, op. cit. note 1; causes of decline from Masson, 

op. cit. note 1. The EU accounted for 60% of global demand 

in 2012, down from 68% in 2011, per “Solarbuzz: PV demand 

reaches 29 GW in 2012,” op. cit. note 2. 

10 European Wind Energy Association (EWEA), Wind in Power: 2012 

European Statistics (Brussels: February 2013). This is down from 

47% in 2011, from EWEA, Wind in Power: 2011 European Statistics 

(Brussels: February 2012), and from EPIA, personal communication 

with REN21, 3 April 2012. 

11 Structure and management from EPIA, op. cit. note 1, p. 6; 

barriers from Masson, op. cit. note 1, and from Tim Murphy, 

“Addressing PV Grid-Access Barriers Across Europe,” NPD 

Solarbuzz, 7 February 2013, at www.renewableenergyworld.com. 

12 Almost half and more than wind based on the following sources: 

estimated solar PV capacity in operation at year’s end in Germany 

and Italy and on an estimated wind capacity of 8,144 MW in 

Italy, from Global Wind Energy Council, Global Wind Report, 

Annual Market Update 2012 (Brussels: April 2013); 31,315 MW 

in Germany from Federal Ministry for the Environment, Nature 

Conservation and Nuclear Safety (BMU), “Renewable Energy 

Sources 2012,” with data from Working Group on Renewable 

Energy-Statistics (AGEE-Stat), provisional data, 28 February 2013, 

at www.erneuerbare-energien.de; and 100 GW of global solar PV 

capacity. Figure 12 based on the following sources: global total 

from sources in Endnote 1; national data from elsewhere in this 

section, except for Spain and the Czech Republic: Spain added 

223 MW for a total of 5,100 MW, per IEA-PVPS, op. cit. note 1, 

added 276 MW for a total of 5,166 MW, per EPIA, op. cit. note 1, 

and added 237 MW for a total of 4,298 MW, per Red Eléctrica de 

España, “Potencia Instalada Peninsular (MW),” updated 29 April 

2013; Czech Republic added 113 MW in 2012 for a total of 2,085 

MW, per IEA-PVPS, op. cit. note 1, and added 113 MW in 2012 for 

a total of 2,072 MW, per EPIA, op. cit. note 1. 

13 Based on the following: Germany added 7,604 MW for 32,411 MW 

at year’s end, from EPIA, op. cit. note 1, p. 20, and from IEA-PVPS, 

op. cit. note 1; Germany added 7,604 MW for a total of 32,643 

MW from BMU, op. cit. note 12; and year-end 2012 capacity of 

PV systems installed under the EEG was 32,388.6 MW (based on 

end-March data and monthly installations in 2013), per German 

Federal Network Agency (Bundesnetzagentur), “Monatliche 

Veröffentlichung der PV-Meldezahlen,” at “Photovoltaikanlagen: 

Datenmeldungen sowie EEG-Vergütungssätze,” at 

www.bundesnetzagentur.de, viewed 18 May 2013. 

14 BMU, op. cit. note 12. 

15 Based on 12,773.4 MW in operation at the end of 2011 and 

16,419.8 MW at the end of 2012, from Gestore Servizi Energetici 

(GSE), Rapporto Statistico 2012 – Solare Fotovoltaico, 8 May 2013, 

p. 8, at www.gse.it. Note that 3,337 MW was added for a total of 

16,250 MW per IEA-PVPS, op. cit. note 1; 3,577 MW added for 

a total of 16,350 MW from GSE, "Impianti a fonti rinnovabili in 

Italia: Prima stima 2012," 28 February 2013, at www.gse.it; and 

3,438 MW added for a total of 16,361 MW per EPIA, op. cit. note 

1, p. 28. Annual additions in 2011 were 9.3 GW, but 3.7 GW of this 

amount was installed in a rush in late 2010 and connected to the 

grid in 2011. GSE, “Impianti a fonti rinnovabili in Italia: Prima stima 

2011,” 6 March 2012, at www.gse.it. 

16 France installed an estimated 1,079 MW in 2012 (down from 

2,923 MW in 2011) for a year-end total of 4,003 MW, from 

Commissariat Général au Développement Durable, Ministère de 

l’Écologie, du Développement durable et de l’Énergie, “Chiffres 

et statistiques,” No. 396, February 2013; and from IEA-PVPS, 

op. cit. note 1; United Kingdom added 1,000 MW for a total of 

1,830 MW per IEA-PVPS, op. cit. note 1, and added 925 MW for a 

total of 1,829 MW, per EPIA, op. cit. note 1, p. 20; Greece (added 

912 MW; total of 1,536 MW), Bulgaria (added 767 MW; total of 

908 MW), and Belgium (added 599 MW; total of 2,650 MW), 

per IEA-PVPS, op. cit. note 1, and all data were the same except 

Belgium’s year-end total of 2,567 MW from EPIA, op. cit. note 

1, p. 28; Greece also from Hellenic Association of Photovoltaic 

Companies, “Greek PV Market Statistics 2012,” January 2013, 

at www.helapco.gr. Another source shows Greece adding 1,126 

MW grid-connected in 2012, from Hellenic Transmission (grid 

operator), cited in Mercom Capital Group, “Greece Reaches Over 

1 GW of Installed Capacity in December 2012,” Market Intelligence 

Report – Solar, 4 February 2013. 

17 Based on data from EPIA, op. cit. note 1, and from IEA-PVPS, op. 

cit. note 1. 

18 Figure of 12.5 GW added based on global additions of 29.4 GW 

less the 16.9 GW added in Europe, on data from sources provided 

in Endnote 1, and on sources for national data throughout this 

section. 

19 China added 3,510 MW per IEA-PVPS, op. cit. note 1; 5 GW per 

EPIA, op. cit. note 1, p. 5; and 1.19 GW per China State Electricity 

Regulatory Commission, cited in Peng Peng, “China Market 

Focus: Solar PV and Wind Market Trends in 2012,” in U.S.-China 

Market Review, 2012 Year End Edition (American Council on 

Renewable Energy (ACORE) and Chinese Renewable Energy 

Industries Association (CREIA): 2013), p. 24. Total PV capacity 

installed in China in 2012, including systems not connected to the 

grid, was 4–4.5 GW, per CREIA cited in Peng, op. cit. this note. 

The United States added 3,313 MW, per GTM Research and SEIA, 

U.S. Solar Market Insight Report, 2012 Year in Review (Washington, 

DC: 2013), p. 6. Japan added 1,718 MW per IEA-PVPS, provided 

by Masson, op. cit. note 1; 2 GW from EPIA, op. cit. note 1, p. 31. 

Australia added 1 GW, from IEA-PVPS, op. cit. note 1, and from 

EPIA, op. cit. note 1, p. 31. India added 980 MW, from IEA-PVPS, 

op. cit. note 1; and 1,090 MW per Bridge to India, India Solar 

Compass, January 2013 Edition. 

20 Asia additions based on capacity added in China (3,510 MW), 

Japan (1,718 MW), South Korea (252 MW), Malaysia (22 MW), 

India (980 MW), and Thailand (210 MW), from IEA-PVPS, op. cit. 

note 1, and from Masson, op. cit. note 1; in Taiwan (104 MW) and 

other Asia-Pacific (201 MW), from EPIA, op. cit. note 1; and from 

EPIA database, May 2013; North America and Asia rising from 

Masson, op. cit. note 1. 

21 Total U.S. capacity came to 7,219 MW at the end of 2012, from 

GTM Research and SEIA, op. cit. note 19, p. 21; capacity was 

7,221 MW, per IEA-PVPS, op. cit. note 1; and 7,777 MW, per EPIA, 

op. cit. note 1, p. 13. 

22 California from GTM Research and SEIA, op. cit. note 19, p. 21. 

23 Spreading from Larry Sherwood, “Five Key Takeaways from the 

U.S. Solar Market Trends Report,” RenewableEnergyWorld.com, 

17 August 2012; drivers from SEIA and GTM Research, “Solar 

Market Insight 2012: Q3 Executive Summary,” December 2012, 

and from Jeremy Bowden, “PV Policy and Markets – Impact of US 

Tariffs on LCOE,” Renewable Energy World, November–December 

2012, p. 7. 

24 Diane Cardwell, “Solar Panel Payments Set Off a Fairness 

Debate,” New York Times, 4 June 2012; Felicity Carus, “Net 

Energy Metering Battle Fires Up Solar Industry,” PV-tech.com, 5 

February 2013; Travis Bradford, Prometheus Institute, New York, 

personal communication with REN21, 27 March 2013. 

25 Utilities accounted for 54% of capacity additions from GTM 

Research and SEIA, op. cit. note 19, p. 10. Utility installations 

surpassed the commercial sector (31.5% of the total market) for 

the first time, and the residential share (15%) held steady relative 

to 2011, per idem; utility projects totaled 2,710 MW by year’s end, 

based on “Utility-Scale Project Pipeline (As of January 15, 2013),” 

PV News, February 2013, p. 14, capacity under construction from 

GTM Research and SEIA, op. cit. note 19, p. 18. 

26 GTM Research and SEIA, op. cit. note 19, p. 19. 

27 Figure of 7 GW and below expectations from Masson, op. cit. note 

1; 7 GW also from IEA-PVPS, op. cit. note 1; 8,300 MW from EPIA, 

148

op. cit. note 1, p. 13. Below expectations also from Peng, op. cit. 

note 19. Note that China added 1.06 GW of on-grid PV capacity 

in 2012 for a total of 3.28 GW, per Wang Wei, China National 

Renewable Energy Center (CNREC), “China renewables and 

non-fossil energy utilization,” www.cnrec.org/cn/english/publication/2013-03-02-371.html, 

viewed April 2013. 

28 One-third of panel shipments from Michael Barker, “China 

Consumes 33% of Global Photovoltaic Panel Shipments in Q4’12, 

According to NPD Solarbuzz,” RenewableEnergyWorld.com, 22 

January 2013; exceeded Germany from “Solarbuzz: PV demand 

reaches 29 GW in 2012,” op. cit. note 2; government efforts from 

Ucilia Wang, “First Solar, SunPower Ink Major Deals in China,” 

Forbes, 3 December 2012. 

29 About 25% of capacity in operation by mid-2012 was considered 

distributed, according to the State Grid Corporation, cited in 

Frank Haugwitz, “January 2013-Briefing Paper-China Solar 

Development,” Asia Europe Clean Energy (Solar) Advisory Co., Ltd, 

contribution to REN21, 21 February 2013. 

30 To help achieve China’s Energy Policy 2012, the National Energy 

Administration issued the “12th Five-Year Plan for Solar Power 

Development,” which includes a focus on the construction of 

distributed solar systems linked to buildings or facilities in eastern 

and central China, per Gary Wigmore, James Murray, and Shepard 

Liu, “China Policy: Strategic Developments in Solar and Wind 

Power Policies,” in U.S.-China Market Review..., op. cit. note 19, 

p. 15. At year’s end, a pipeline of projects under the Golden Sun 

and Solar Rooftop programmes was expected to bring more than 

2.5 GW of capacity into operation during 2013, per Steven Han, 

“Distributed PV Power Generation to Accelerate China Market 

Growth,” NPD SolarBuzz, 6 December 2012, at www.renewableenergyworld.com. 

31 An estimated 1,718 MW was added for a total of 6,632 MW, per 

IEA-PVPS, provided by Masson, op. cit. note 1. This number was 

used as it was the latest data available. Note that estimates for 

Japan were wide ranging, including 2,000 MW added for a total 

of 7,000 MW at the end of 2012, per IEA-PVPS, op. cit. note 1; 

6,914 MW per EPIA, op. cit. note 1, p. 32; and as high as 7.3 GW, 

per Japan Photovoltaic Energy Association (JPEA), provided by 

Matsubara Hironao, Institute for Sustainable Energy Policies 

(ISEP), Tokyo, personal communication with REN21, 21 April 

2013; 90% in the FIT system (with 40% for projects >1 MW) from 

www.enecho.meti.go.jp/saiene/kaitori/index.html (in Japanese), 

provided by Hironao, op. cit. this note. 

32 Yuriy Humber and Tsuyoshi Inajima, “Japan’s Aggressive 

FIT Already Unlocking Gigawatts of Wind and Solar Power,” 

Bloomberg, 1 October 2012, at www.renewableenergyworld.com. 

33 Australia added an estimated 1,000 MW for a total of 2,400 MW, 

per IEA-PVPS, op. cit. note 1; and added 1,000 MW for a total of 

2,412 MW, per EPIA, op. cit. note 1, p. 32. Note, however, that final 

numbers could come in lower, per Masson, op. cit. note 1. 

34 “Rooftop PV in South Australia Lowers Energy Demand,” PV 

News, September 2012, p. 8. Grid electricity demand fell about 

5% in 2011–12, due greatly to these systems, according to South 

Australian Electricity Report, August 2012, cited in idem. 

35 India’s capacity increased from 225 MW at year-end 2011 to 

1,205 MW at year-end 2012, from PVPS, op. cit. note 1, and from 

EPIA, op. cit. note 1, p. 32. 

36 Namibia (237 kW; largest in country, on roof of supermarket), 

South Africa 630 kW (largest roof-installed solar PV system 

in Africa); also, in Botswana (1 MW partially installed by early 

2013, from “SolarWorld Expands its International Business,” 

SonnenSeite.com, 8 February 2013. Also, there are two larger 

PV installations in South Africa (1 MW Dilokong Chrome and 850 

kW Cape Town Solar), per PLATTS UDI World Electric Power 

Plants Database, provided by Caspar Priesemann, Deutsche 

Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, 

personal communication with REN21, 19 April 2013. Note that 

South Africa has approved solar PV projects under the Renewable 

Energy IPP Programme (REIPPP), has signed agreements with 

“window 1” bidders, and is about to reach project closure under 

“window 2”; none of the plants have been commissioned as 

yet, per W. Jonker Klunne, Council for Scientific and Industrial 

Research, Pretoria, personal communication with REN21, 21 

April 2013. Chinese companies from Bloomberg New Energy 

Finance (BNEF), “Germany and US Report Strong Growth in Solar 

Installations,” Energy: Week in Review, 12–18 June 2012. Most 

projects are for powering street lamps, from idem. 

37 EPIA, op. cit. note 1, p. 31. 

38 Scott Burger, “Turkey Solar Market Outlook, 2013-2017,” PV 

News, February 2013, p. 1; Matt Carr, “Photovoltaic Opportunities 

in Saudi Arabia Growing,” RenewableEnergyWorld.com, 5 

February 2013; Wael Mahdi, “Saudi Arabia Plans $109 Billion 

Boost for Solar Power,” Bloomberg.com, 22 November 2012; 

“Saudi Arabia’s Largest PV System Installed,” PV News, March 

2013, p. 13; Isofoton signed a joint venture agreement for 300 MW 

in August, per “Isofoton to Develop PV Plants in MENA, India with 

INDSYS,” PV News, November 2012, p. 12. 

39 IMS Research, “Thailand and Indonesia to Drive South East Asia 

PV Market,” press release (Shanghai: 1 November 2012); Malaysia 

had an estimated 22 GW by the end of 2012, per EPIA, op. cit. 

note 1, p. 31. Thailand ranks fifth in the Asia-Pacific region, after 

China, Japan, India, and Australia, from idem. 

40 Masson, op. cit. note 1; NPD Solarbuzz, Emerging PV Markets 

Report: Latin America & Caribbean, cited in Chris Sunsong, “Latin 

America and Caribbean PV Demand Growing 45% Annually Out 

to 2017,” NPD Solarbuzz, 2 January 2013, at www.renewableenergyworld.com; 

commercial (e.g., IKEA) and industrial (e.g., 

Grupo Mesa) sectors from Bea Gonzalez, “Off-grid CPV in Latin 

America,” 13 February 2013, at http://news.pv-insider.com; and 

“Solar in Latin America & The Caribbean 2013: Markets, Outlook 

and Competitive Positioning,” PV News, February 2013, p. 13. 

Chile went from zero grid-connected capacity in early 2012 to 3.6 

MW in operation in January 2013, with 1.3 MW under construction, 

per Rodrigo Escobar Moragas, Pontificia Universidad 

Católica de Chile, personal communication with REN21, 18 April 


41 See, for example, International Renewable Energy Agency 

(IRENA), International Off-grid Renewable Energy Conference: Key 

Findings and Recommendations (Abu Dhabi: forthcoming 2013). 

42 Becky Beetz, “Tokelau Officially Becomes World’s First 100% PV 

Powered Territory,” PV Magazine, 15 November 2012, at www. 

pv-magazine.com. 

43 Australia, Israel, Norway, and Sweden from Solar Server, 

“Electricity for the rest of the world – opportunities in off-grid 

solar power,” www.solarserver.com/solar-magazine/solar-report/ 

solar-report/electricity-for-the-rest-of-the-world-opportunities-inoff-grid-solar-power.html. 

Australia had an estimated 16.1 MW of 

rural off-grid capacity by the end of 2012, up from 13.7 MW at the 

end of 2011, per Green Energy Markets, “Small-Scale technology 

certificates data modeling for 2013 to 2015,” February 2013. 

Off-grid systems accounted for 10% of the U.S. market in 2009 

but have declined since then; Australia and South Korea also 

installs dozens of MW of off-grid capacity each year, per EPIA, op. 

cit. note 1, p. 10. 

44 Paula Mints, “12 Solar Power Myths and the Saving Grace of a 

Worthwhile Cause,” RenewableEnergyWorld.com, 10 December 

2012. 

45 Figures of 1% and 100 MW from Masson, op. cit. note 1. The 

market is about 1% from GTM Research, cited in Dave Levitan, 

“Will Solar Windows Transform Buildings to Energy Producers?” 

Yale Environment 360, 3 May 2012, at http://e360.yale.edu. The 

market was an estimated 400 MW at a value of just over USD 600 

million from Pike Research, cited in “BIPV, BAPV Markets to Grow 

Five-Fold by 2017,” PV Intelligence Brief, 20 December 2012–8 

January 2013, at http://news.pv-insider.com. 

46 BCC Research, “Building-integrated Photovoltaics (BIPV): 

Technologies and global markets,” cited in “BIPV technology 

and markets: Explosive growth now predicted for BIPV players,” 

Renewable Energy World, November–December 2011, p. 10. 

47 Robin Whitlock, “Report: BIPV to Be One of the Fastest Growing 

PV Segments,” RenewableEnergyFocus.com, 21 August 2012. 

48 Elisa Wood, “Gardens that Grow Gigawatts: Community Solar 

Poised to Hit Big Time,” Large Scale Solar Supplement, Renewable 

Energy World, September–October 2012, pp. 18–20. Most 

projects are in the 1 MW range, from idem. 

49 By the end of 2012 or early 2013, the first phase (37 kW) of the 

project had been installed, per “Australian Community Solar 

Project Begins Operation,” PV News, January 2013, p. 11. 

50 Figure of 30 MW and up from Denis Lenardic, pvresources.com, 

personal communication with REN21, 31 March 2013; 10 MW and 

up from Philip Wolfe, “The Rise and Rise of Utility-scale Solar,” 

Large Scale Solar Supplement, Renewable Energy World, March– 

April 2013, pp. 4–6. 

51 More than 4 GW and at least 12 from Denis Lenardic, pvresources. 

com, personal communications with REN21, 24 February and 31 

March 2013, and from “Large-scale Photovoltaic Power Plants 

Ranking 1-50,” www.pvresources.com/PVPowerPlants/Top50. 

02 


ENDNOTES 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Solar Photovoltaics (PV) 

aspx, updated 21 January 2013. The countries are Canada, China, 

the Czech Republic, France, Germany, India, Italy, Portugal, 

Spain, Thailand, Ukraine, and the United States, per Lenardic, op. 

cit. note 50. 

52 Considering extensions of existing PV power projects as well 

as single stages completed in 2012, at least 24 plants of more 

than 30 MW were connected to the grid in 2012, per Lenardic, 

op. cit. note 50; rankings from “Large-scale Photovoltaic Power 

Plants Ranking 1-50,” op. cit. note 51. The plant in Arizona 

(Agua Caliente), which uses First Solar panels, is expected to be 

completed in 2014 when it reaches a total of 290 MW capacity, 

per First Solar, “Agua Caliente Solar Project,” www.firstsolar.com/ 

en/Projects/Agua-Caliente-Solar-Project, viewed 14 March 2013; 

the first 250 MW came on line in 2012, per GTM Research and 

SEIA, op. cit. note 19, p. 18. 

53 Germany and other leaders from “Large-scale Photovoltaic Power 

Plants Ranking 1-50,” op. cit. note 51, and from Lenardic, op. cit. 

note 50. Considering plants larger than 10 MW, China led for new 

installations during the 12-month period up to March 2013. China 

was followed by the United States, Germany, India, and France, 

from Wiki-Solar, cited in “5.75 GW of Large Solar PV Plants Added 

Globally in the Last 12 Months,” SolarServer.com, 25 February 


54 For example: in Ghana, the 155 MW Nzema solar project is 

expected to be on line by late 2015, per Daniel Cusick, “Ghana 

Will Build Africa’s Largest Solar Array,” E&E, 4 December 2012; 

Adam Vaughan, “Africa’s Largest Solar Power Plant to Be Built 

in Ghana,” The Guardian (U.K.), 4 December 2012; South 

Africa plans two 75 MW projects, per Vince Font, “Financial 

Green Lights Signal Upswing in Global Solar PV Development,” 

RenewableEnergyWorld.com, 16 November 2012; in Serbia, 

a definitive agreement was signed with the government in 

October for the OneGiga project, per Misha Savic, “Securum, 

Serbia Sign Agreement to Build 1,000-MW Solar Park,” 

Bloomberg, 31 October 2012, at www.renewableenergyworld. 

com; plans were announced in 2012 for a 200 MW plant in 

Java, Indonesia, per Bryony Abbott, “Southeast Asia’s Solar 

Market Continues to Attract International and Regional Interest,” 

RenewableEnergyWorld.com, 5 October 2012; in the United 

States, an 800 MW solar farm is planned for California (Mt. Signal 

Farm), per Font, op. cit. this note; in Mexico, a letter of intent was 

signed with the Comision Federal de Electricidad with SunEdison 

for a 50 MW PV plant, per Charles W. Thurston, “Mexico’s Sunny 

Sonora State Fosters Solar PV Growth,” RenewableEnergyWorld. 

com, 6 November 2012; a 250 MW plant was approved for 

construction in the southern Japanese city of Setouchi, per Yuriy 

Humber and Tsuyoshi Inajima, “Japan’s Aggressive FIT Already 

Unlocking Gigawatts of Wind and Solar Power,” Bloomberg, 1 

October 2012, at www.renewableenergyworld.com; China plans 

a 310 MW project for Shanxi province, per Tim Culpan, “GCL-Poly 

Planning Massive Solar Power Installations in China,” Bloomberg, 

3 October 2012, at www.renewableenergyworld.com; in January 

2012, Oman announced plans for a 400 MW solar PV plant, per 

Ian Stokes, “Full Version: Renewable Energy Project Monitor,” 

RenewableEnergyFocus.com, 30 April 2012. 

55 Alasdair Cameron, “Tracking the Market: focus on the concentrating 

photovoltaic sector,” Renewable Energy World, July–August 

2011, pp. 71–75; locations from Travis Bradford, Prometheus 

Institute, Chicago, personal communication with REN21, 21 

March 2012. 

56 MW projects from Debra Vogler, “CPV ramps to utility status 

in 2011,” Renewable Energy World, 18 October 2011, at www. 

electroiq.com; 116 plants were identified with a combined 

capacity just over 100 MW, per PV Insider, “CPV World Map 2012,” 

June update, prepared for CPV USA 2012, 4th Concentrated 

Photovoltaic Summit USA 2012, www.pv-insider.com/cpv12; 

global capacity totaled 88 MW, per Steve Leone, “Amonix Closes 

150-MW Las Vegas HCPV Plant,” RenewableEnergyWorld.com, 

19 July 2012. 

57 United States (50 MW) including Colorado plant, Spain (26 MW), 

China (6 MW) and Chinese Taipei/Taiwan (5 MW), Italy (3.2 MW), 

Australia (3.1 MW); all estimates derived from PV Insider, “CPV 

World Map 2012,” op. cit. note 56. Other countries with CPV 

capacity include: Denmark, France, Greece, Malta, and Portugal 

in Europe; Egypt, Morocco, and South Africa in Africa; Israel, 

Saudi Arabia, and the United Arab Emirates in the Middle East; 

Australia; Japan, Korea, and Malaysia in Asia; and Chile and 

Mexico in Latin America. The United States had 37 MW in operation 

at the end of 2012, with 7 MW of this installed in 2011 and 

30 MW in 2012, and another 4 MW came on line in New Mexico in 

January 2013 (data include only “utility-scale” projects), per SEIA, 

“Utility-Scale Solar Projects in the United States Operating, Under 

Construction, or Under Development,” updated 11 February 

2013. Australia has a 500 kW test plant at Bridgewater that began 

operation in March 2012, per Silex Systems, “Solar Systems’ 

Bridgewater Test Facility Commences Operation,” press release 

(Lucas Heights, NSW: 21 March 2012; and a plant at Mildura, with 

the first 1.5–2 MW of a planned (up to) 150 MW coming on line in 

April 2013, per Giles Parkinson, “Solar Systems Begins Operation 

at Mildura Power Plant,” REneweconomy.com, 15 April 2013, at 

http://reneweconomy.com.au. 

58 Jason Deign, “What Lies in Store for CPV in 2013?” PV Insider, 

23 January 2013, at http://news.pv-insider.com. Note that a 50 

MW project, the world’s largest to date, was under construction 

in China’s Qinghai Province in early 2013, per Frank Haugwitz, 

consultant, personal communication with REN21, April 2013. 

59 Italy based on preliminary data from Terna, “Early Data on 2012 

Electricity Demand: 325.3 Billion kWh The Demand, -2.8% 

Compared to 2011,” press release (Rome: 9 January 2013); in 

Germany, solar PV generated 28 billion kWh in 2012, corresponding 

to 4.7% of total gross electricity consumption, per BMU, 

op. cit. note 12; about 5% in Germany from BSW (Federal Solar 

Industry Association), “Rekordjahr 2012: Deutschland erzeugt 

Solarstrom für 8 Millionen Haushalte,” at www.solarwirtschaft.de 

(using Google Translate); and 5.6% of annual demand from IEA- 

PVPS, op. cit. note 1; in May 2012, distributed solar PV systems 

in Germany produced 10% of the country’s total electricity consumption, 

up 40% over May of 2011, per Stephen Lacey, “Solar 

Provides 10 Percent of Germany’s Electricity in May,” Climate 

Progress, 12 June 2012, at www.renewableenergyworld.com; 

in August, PV met 8.4% of Italy’s electricity demand, according 

to grid operator Terna SpA, cited in “PV Provides 8.4% of Italian 

Electricity in August,” PV News, October 2012, p. 6. 

60 EPIA, op. cit. note 1, pp. 13, 44. 

61 Build-up especially in China from Bowden, op. cit. note 23, p. 7; 

impacts from Sarasin, “Working Towards a Cleaner and Smarter 

Power Supply” (Basel, Switzerland: December 2012). 

62 “Strong Year for Solar PV as Support Subsidies Slashed,” 

Renewable Energy Focus, July/August 2012; Doug Young, “Solar 

Bits: LDK Woes, Hanwha Loan,” RenewableEnergyWorld.com, 31 

December 2012; excluding cadmium telluride (CdTe) thin films, 

per Masson, op. cit. note 1. 

63 Estimates of 30% and 20% from Izumi Kaizuka, RTS Corporation 

and IEA-PVPS, personal communication with REN21, 15 April 

2013; module prices declined 28% and thin-film prices 19% 

from “Hanergy Sees Thin-Film Solar Gaining Market Share,” 

Bloomberg, 8 March 2013, at www.renewableenergyworld.com; 

reduction of 38.1% in 2012 after a drop of 44.1% in 2011, from 

GTM Research Competitive Intelligence Tracker, April 2013; average 

global module prices fell by 42%, from USD 1.37/Wp in 2011 

to USD 0.79/Wp in 2012, per Paula Mints, “Solar PV Profit’s Last 

Stand,” RenewableEnergyWorld.com, 22 March 2013. Note that 

between 2005 and late 2012, solar module prices declined more 

than 70%, per Chris Cather, “Are Solar Developer Fees Declining?” 

RenewableEnergyWorld.com, 19 November 2012. 

64 Costs are in 2011 USD, and U.S. system costs ranged from USD 

4–8/W, all from IRENA, Renewable Power Generation Costs in 

2012: An Overview (Abu Dhabi: January 2013), p. 54. Note that 

installed costs were as low as USD 2/Watt in Germany and higher 

in the United States, where balance-of-system costs have not 

fallen as quickly, per Pernick, Wilder and Winnie, op. cit. note 

2; costs in Germany were as low as 1 EUR/W in the utility-scale 

segment and easily below 1.6 EUR/W in the residential segment, 

per Masson, op. cit. note 1. Further, installed costs of residential 

systems in Germany are significantly lower than those in the 

United States due greatly to lower “soft costs” (permitting 

fees, installation, balance of systems), per Joachim Seel, Galen 

Barbose, and Ryan Wiser, “Why Are Residential PV Prices in 

Germany So Much Lower Than in the United States? A Scoping 

Analysis” (Berkeley, CA: Lawrence Berkeley National Laboratory, 

February 2013). See Table 2 for year-end data. 

65 Production in 2012, down from 32.9 MW of cells and 36.1 MW of 

modules in 2011, from GTM Research Competitive Intelligence 

Tracker, April 2013. Note that production capacity was roughly 

36 GW, a slight increase from about 35 GW in 2011, while actual 

production was almost 29 GW and shipments increased about 

10% to 26 GW, per Paula Mints, SPV Market Research, cited in 

James Montgomery, “Solar PV Module Rankings in 2012, and 

What Comes Next,” RenewableEnergyWorld.com, 3 May 2013. 

150

66 Based on production capacity of 56.5 GW from IHS Solar, per 

EPIA, op. cit. note 1, p. 54; 75.8 GW of modules and 61.2 GW of 

cells in 2012, up from 65.9 GW of modules and 56.2 GW of cells 

in 2011, from GTM Research Competitive Intelligence Tracker, 

April 2013; 70 GW of modules according to SEIA and GTM 

Research, op. cit. note 23. The wide range of numbers reflects the 

difficulty of counting production capacities when the industry is in 

overcapacity, per Masson, op. cit. note 1. Production capacities 

often refer to announced capacities, which are generally higher 

than actual, and contract manufacturing increases risk of double 

counting, per EPIA, op. cit. note 1, p. 52. 

67 Based on China representing 64% of global production in 2012, 

per GTM Research Competitive Intelligence Tracker, April 2013; 

and on estimate that mainland China alone has capacity for more 

than 59 GW of annual production, and Taiwan has about 8 GW, 

per Tim Ferry, “Capacity Control: How Will China and Taiwan Solar 

Manufacturers Survive Post-Tariffs?” RenewableEnergyWorld. 

com, 13 November 2012; China’s production capacity was 

equal to the global market from Labwu ZengXian, “Domestic 

Demand Can Save Chinese PV,” RenewableEnergyWorld.com, 12 


68 Thin film’s share of total production in 2012 was 11%, per GTM 

Research Competitive Intelligence Tracker, April 2013. Its share 

fell from a high of 21% in 2009, and 13% in 2011, per GTM 

Research, PV News, May 2012. 

69 Paula Mints, “Reality Check: The Changing World of PV 

Manufacturing,” RenewableEnergyWorld.com, 5 October 2011. 

70 China’s share was 64% (up from 59% in 2011), per GTM Research 

Competitive Intelligence Tracker, April 2013. Firms in mainland 

China and Taiwan alone accounted for 70% of global cell production 

in 2012, per Ferry, op. cit. note 67. 

71 GTM Research Competitive Intelligence Tracker, April 2013. 

72 Ibid. 

73 EPIA, op. cit. note 1, p. 50. 

74 GTM Research Competitive Intelligence Tracker, April 2013. Ten 

of the top 15 manufacturers were in Asia in 2010, per Greentech 

Media, PV News, April 2011. 

75 Based on data from GTM Research Competitive Intelligence 

Tracker, April 2013. Note that Suntech was in fifth place behind 

Canadian Solar, followed by Sharp, Jinko Solar, Sunpower, REC 

Group, and Hanwha SolarOne, to round out the top 10, and Solar 

Frontier and Kyocera (both Japan) were in the 11th and 12th 

spots (up from 14 and 17, respectively), per IHS, cited in Jonathan 

Cassell, “China’s Yingli Tops PV Module Supplier Rankings in 

2012; Suntech Slips to Fifth,” Solarplaza.com, 11 April 2013. 

Yingli and First Solar were in the top two spots, followed by 

Suntech and Canadian Solar; Sharp is ranked sixth, followed by 

Jinko Solar, JA Solar, SunPower, and with Hanwha SolarOne in 

10th position, per SolarBuzz, cited in Zachary Shahan, “Graph of 

the Day: World’s Top Ten Solar PV Suppliers,” solar360.com, 15 


76 Project development side from Jennifer Runyon, “Strategic 

Investing in the Solar Industry: Who is Buying Whom and Why,” 

RenewableEnergyWorld.com, 5 December 2012; manufacturers 

affected included Solarworld (USA), Yingli Solar (China), Trina 

Solar (China), and First Solar (USA), per Sarasin, op. cit. note 61. 

77 Shyam Mehta, “Global PV Module Manufacturers 2013: 

Competitive Positioning, Consolidation and the China Factor,” 

GTM Research, 2013. Companies filing for insolvency included: 

Solon SE, Solar Millennium AG, and Solarhybrid in Germany, 

per Stefan Nicola, “China Price War Draining Jobs in Germany’s 

Solar Valley,” Bloomberg, 7 September 2012, at www.renewableenergyworld.com; 

Sovello and Solecture in Germany from 

Ucilia Wang, “Solar Woes Continue with Sovello’s Bankruptcy 

Filing,” RenewableEnergyWorld.com, 14 May 2012; CIGs thin-film 

manufacturer Centrotherm in Germany from Ucilia Wang, 

“No End In Sight? The Struggle of Solar Equipment Makers,” 

RenewableEnergyWorld.com, 30 November 2012, and from 

BNEF, “Star Shines Bright for China as Europe’s Subsidies Fade,” 

Energy: Week in Review, 9–16 July 2012; Renewable Energy 

Corp. (REC) Wafer Norway AS from Stephen Treloar, “REC ASA 

to File for Insolvency of Norway Solar Wafer Unit,” Bloomberg, 

14 August 2012, at www.renewableenergyworld.com; REC 

shut down all manufacturing in Europe by April 2012, per Kari 

Williamson, “REC Closes Remaining Norwegian Solar Production,” 

RenewableEnergyFocus.com, 27 April 2012; Siliken (Spain) from 

Mercom Capital Group, “Siliken Files for Insolvency,” Market 

Intelligence Report – Solar, 4 February 2013; Alicante (IATSO, 

Spain) from Mercom Capital Group, “Spanish Module Producer 

Iatso Files for Insolvency,” Market Intelligence Report – Solar, 25 

February 2013; U.S. thin-film manufacturer Konarka Technologies 

from Jennifer Runyon, “Thin Film Organic Solar PV Maker Konarka 

Technologies Files for Chapter 7,” RenewableEnergyWorld.com, 

4 June 2012; Abound Solar (USA) from GTM Research, cited 

in Ucilia Wang, “Q2 Report Shows US Solar Market Booming, 

Utility-Scale Projects Leading,” RenewableEnergyWorld.com, 10 

September 2012; amorphous silicon thin-film startup Signet Solar 

(USA) from Ucilia Wang, “No End In Sight? The Struggle of Solar 

Equipment Makers,” RenewableEnergyWorld.com, 30 November 

2012, and from BNEF, op. cit. this note; a-Si manufacturing pioneer 

UniSolar (USA) from Paula Mints, “PV Still Facing a Bumpy 

Ride: Working in a Low-incentive World,” Navigant Consulting, 

10 September 2012, at www.renewableenergyworld.com. In 

addition, Schüco International KG (Germany) reported plans to 

stop production and R&D of thin-film products, per “Schüco shuts 

doors on thin film,” PV Intelligence Brief, 1–14 August 2012, at 

http://news.pv-insider.com; Schott Solar (Germany) withdrew 

from crystalline silicon sector but remained in thin film, BIPV, and 

CSP market, per Sile McMahon, “Solar shakeout: Schott Solar 

announces surprise exit from c-Si manufacturing,” PV-tech.org, 

29 June 2012. 

78 U.S. estimate from Coalition for American Solar Manufacturing, 

cited in Jennifer Runyon, “Can We Really Blame China for 

Solar Manufacturer Bankruptcies?” RenewableEnergyWorld. 

com, 6 November 2012; European and Chinese companies 

from Bowden, op. cit. note 23, p. 7; 50 Chinese manufacturers 

had closed by mid-July 2012 from Ucilia Wang, “Into Thin Air: 

The Disappearance of Dozens of Chinese Solar Companies,” 

RenewableEnergyWorld.com, 11 July 2012. 

79 Ferry, op. cit. note 67; idled plants from Leslie Hook, “China’s 

Solar Industry on ‘Life Support’,” Financial Times, 18 October 

2012. 

80 USD 20 billion from Bowden, op. cit. note 23, p. 7; Keith Bradsher, 

“Suntech Unit Declares Bankruptcy,” New York Times, 20 March 


81 Centre for Science and Environment, Fortnightly News Bulletin, 17 

January 2013, at www.downtoearth.org.in. 

82 China’s Hanergy Holding Group bought U.S. CIGs maker Miasole; 

SK Group (South Korea) bought HelioVolt; Chinese-Singaporean 

joint venture TFG Radiant Group’s interest in Colorado’s 

Ascent Solar Technologies Inc., and Taiwan Semiconductor 

Manufacturing Co. Ltd.’s stake in San Jose, California-based 

Stion, which also received a strategic investment from Korean 

solar equipment maker Avaco, per “Solar Wind Blows Up a Flurry 

of Deals,” Sunday Morning Herald (Australia), 18 October 2012; 

Q-Cells filed for insolvency in early 2012, per “Strong Year for 

Solar PV as Support Subsidies Slashed,” Renewable Energy Focus, 

July/August 2012; Q-Cells purchase from Vince Font, “Newly 

Launched Hanwha Q.CELLS Becomes World’s Third Largest 

Solar Manufacturer,” RenewableEnergyWorld.com, 25 October 

2012; top in 2008 from Paula Mints, “The Often Unprofitable, 

Always Challenging Road to Success of the Photovoltaic Industry,” 

RenewableEnergyWorld.com, 6 February 2013. 

83 Wang, op. cit. note 28; Chisaki Watanabe, “Panasonic Starts 

Malaysia Solar-Panel Plant to Meet Japan Demand,” Bloomberg. 

com, 13 December 2012; GE in response to the rapid decline 

in wholesale prices for solar panels, from GTM Research, cited 

in Ucilia Wang, “Q2 Report Shows US Solar Market Booming, 

Utility-Scale Projects Leading,” RenewableEnergyWorld.com, 10 

September 2012; GE return to R&D from Paula Mints, “Marketing 

Optimism versus Healthy Optimism,” Navigant Consulting, 9 July 

2012, at www.renewableenergyworld.com; GTM Research and 

SEIA, op. cit. note 19, p. 73; Bosch will try to sell solar ingot, wafer, 

cell, and panel production assets, but will keep developing solar 

thin-film technology for the time being, per Stefan Nicola and 

Christoph Rauwald, “Bosch Quits $2.6 Billion Solar Foray in Week 

of Suntech Failure,” Bloomberg.com, 22 March 2013; Julia Chan, 

“Siemens Plans Solar Business Exit,” PV-tech.org, 22 October 

2012. 

84 “R&D Solar Spend on the Backburner,” PV Intelligence Brief, 20 

June 2012, at http://news.pv-insider.com. 

85 Font, op. cit. note 54; Jennifer Runyon, “Staying Alive: Could Thin- 

Film Manufacturers Come Out Ahead in the PV Wars,” Renewable 

Energy World, May-June 2012, pp. 79–83. 

86 For example, Total and subsidiary SunPower commissioned new 

44 MW module manufacturing and assembly plant in Porcelette, 

France, per “Total and SunPower Commission Manufacturing 

02 


ENDNOTES 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – CSP 

Facility in France,” PV News, July 2012, p. 8; China Sunergy 

opened a new manufacturing facility in Istanbul, Turkey, from 

“China Sunergy Begins Manufacturing in Turkey,” PV News, 

February 2013, p. 4, and from Anna Watson, “Turkish Solar PV 

Market Set to Sizzle,” RenewableEnergyWorld.com, 1 October 

2012; Astana Solar opened a new wafer and module manufacturing 

plant in Kazakhstan, per “Kazakhstan PV Manufacturing 

Industry Poised for Growth,” PV News, February 2013, p. 5; 

companies like Sharp and Kyocera are gearing up to meet rising 

demand in Japan, per Chisaki Watanabe, “Solar Boom Heads to 

Japan Creating $9.6 Billion Market,” Bloomberg, 18 June 2012, at 

www.renewableenergyworld.com; other international companies 

are aiming to enter Japan’s market, planning new facilities, setting 

up Japanese subsidiaries, per Ucilia Wang, “Japan: A Beacon for 

Weary Solar Makers,” 5 December 2012, at http://gigaom.com/ 

cleantech/japan-a-beacon-for-weary-solar-makers/; Panasonic 

Corporation started production at a new 300 MW facility in 

Malaysia in December, per “Panasonic Begins Manufacturing in 

Malaysia,” PV News, January 2013, p. 8; Isofoton (Spain) facility in 

Ohio (50 MW initial capacity with plans to expand up to 300 MW), 

per “Isofoton Opens Facility in Ohio,” PV News, October 2012, 

p. 5; “Wafer Factory Opens in Massachusetts,” PV News, March 

2013, p. 10. 

87 “First PV Module Factory Opens in Ethiopia,” PV News, March 

2013, p. 10. 

88 Bowden, op. cit. note 23, p. 7. 

89 First Solar and SunPower from Wang, op. cit. note 28; Trina Solar 

from Joyce Laird, “Survival Strategies,” Renewable Energy Focus, 

July/August 2012. For example, SunPower agreed to form a joint 

venture with Tianjin Zhonghuan Semiconductor, Inner Mongolia 

Power Group, and Hohhot Jinqiao City Development Company 

to produce and install its panels in China. “Canadian Solar Shifts 

Focus Downstream,” and “Q1 2012 PV Manufacturer Earnings 

Update,” both in PV News, June 2012, pp. 5, 9. 

90 Skyline Solar and GreenVolts from “Consolidation: A Step to 

Commercial CPV,” PV Insider, 2 January 2013, www.renewableenergyworld.com, 

and from Leticia Thomas, “2013: Realizing 

CPV’s Potential,” RenewableEnergyWorld.com, 14 December 

2012; “Cash flow issues pushes SolFocus sale,” CPV Intelligence 

Brief, 6–20 November 2012, at http://news.pv-insider.com; 

Steve Leone, “Amonix Closes 150-MW Las Vegas HCPV Plant,” 

RenewableEnergyWorld.com, 19 July 2012; emerging markets 

can be found in Latin America and the Middle East, for example, 

from Leticia Thomas, “2013: Realizing CPV’s Potential,” 

RenewableEnergyWorld.com, 14 December 2012; Soitec (France) 

opened a manufacturing facility in California to produce modules 

for the growing U.S. market, becoming one of the country’s top 

three solar module manufacturers, with the first phase (140 

MWp production potential) operational as of October, per Soitec, 

“Soitec Opens Its Solar Manufacturing Facility in San Diego to 

Locally Produce CPV Modules for the U.S. Renewable Energy 

Market,” press release (San Diego, CA: 19 December 2012); and 

Suncore opened a new production facility in China for total company 

production capacity of 200 MW, per Emcore, “EMCORE’s 

Concentrating Photovoltaic Joint Venture in China Commences 

Production,” press release (Albuquerque, NM: 1 March 2012). 

91 “Consolidation: A Step to Commercial CPV,” PV Insider, 2 January 

2013, at www.renewableenergyworld.com. 

CSP 

1 Total capacity was an estimated 2,549 MW, based on 1,950 

MW in Spain, per Comisión Nacional de Energía (CNE), provided 

by Eduardo Garcia Iglesias, Protermosolar, Madrid, personal 

communication with REN21, 16 May 2013, and Red Eléctrica 

de España (REE), Boletín Mensual, No. 72, December 2012; 

507 MW in the United States from U.S. Solar Energy Industries 

Association (SEIA), “Utility-scale Solar Projects in the United 

States Operating, Under Construction, or Under Development,” 

www.seia.org/sites/default/files/resources/Major%20Solar%20 

Projects%20List%202.11.13.pdf, updated 11 February 2013, 

and from Fred Morse, Abengoa Solar, personal communication 

with REN21, 13 March 2013; 25 MW in Algeria from Abengoa 

Solar, “Integrated solar combined-cycle (ISCC) plant in Algeria,” 

www.abengoasolar.com/corp/web/en/nuestras_plantas/plantas_en_operacion/argelia/, 

viewed 27 March 2012, and from 

New Energy Algeria, “Portefeuille des projets,” www.neal-dz.net/ 

index.php?option=com_content&view=article&id=147&Itemid 

=135&lang=fr, viewed 6 May 2012; 20 MW in Egypt from Holger 

Fuchs, Solar Millennium AG, “CSP – Empowering Saudi Arabia 

with Solar Energy,” presentation at Third Saudi Solar Energy 

Forum, Riyadh, 3 April 2011, at http://ssef3.apricum-group.com, 

and from “A newly commissioned Egyptian power plant weds new 

technology with old,” RenewablesInternational.net, 29 December 

2010; 20 MW in Morocco from World Bank, “Nurturing low carbon 

economy in Morocco,” November 2010, at http://go.worldbank. 

org/KIN4DEUC70, and from Moroccan Office Nationale de 

l’Électricité Web site, www.one.org.ma, viewed 7 March 2012; 

10 MW in Chile from Abengoa Solar, “Minera El Tesoro Brings 

South America’s First Solar Thermal Plant, Designed and Built by 

Abengoa, Online,” press release (Seville: 2 January 2013), and 

from Chilean Ministry of Energy, “En pleno desierto de Atacama 

Ministro de Energía inaugural innovadora planta solar,” 29 

November 2012, at www.minenergia.cl (using Google Translate); 

12 MW in Australia from the following sources: CSP World, “Liddell 

Solar Thermal Station,” www.csp-world.com/cspworldmap/liddellsolar-thermal-station; 

Elena Dufour, European Solar Thermal 

Electricity Association (ESTELA), personal communication with 

REN21, 3 April 2013; U.S. National Renewable Energy Laboratory 

(NREL), “Lake Cargelligo,” SolarPaces, www.nrel.gov/csp/solarpaces/project_detail.cfm/projectID=261, 

updated 5 February 

2013; NREL, “Liddell Power Station,” SolarPaces, www.nrel.gov/ 

csp/solarpaces/project_detail.cfm/projectID=269, updated 5 

February 2013; and Novatec Solar, “Novatec Solar’s Australian 

Fuel-Saver Commences Operation,” press release (Karlsruhe: 

24 October 2012). 5 MW in Thailand from “Thailand’s First 

Concentrating Solar Power Plant,” Thailand-Construction.com, 27 

January 2012; from “CSP in Thailand,” RenewablesInternational. 

net, 6 February 2012; and from NREL, “Thai Solar Energy 1,” 

SolarPaces, www.nrel.gov/csp/solarpaces/project_detail.cfm/ 

projectID=207, updated 5 September 2012. Note that year-end 

global capacity was 2,580 MW, per “Protermosolar: CSP Spanish 

Companies involved in 64% of the Solar Thermal Power Projects 

in the World,” HelioCSP.com, 7 March 2013. Figure 14 compiled 

from various sources in this note and from REN21, Renewables 

2012 Global Status Report (Paris: June 2012), pp. 51–52. 

2 Figure of 970 MW added based on 951 MW added in Spain, 

from CNE, op. cit. note 2; from REE, op. cit. note 1; and from 

REE, Boletín Mensual, No. 60, December 2011; 10 MW in Chile, 

from Abengoa Solar, op. cit. note 1, and from Chilean Ministry 

of Energy, op. cit. note 1; 9 MW in Australia from “Liddell Solar 

Thermal Station,” op. cit. note 1, and from Dufour, op. cit. note 1. 

In addition, at least 1 MW appears to have come on line in China, 

but it is likely a pilot plant and is unconfirmed, so it is not included 

in the total. 

3 Estimate of 42.8% based on 430 MW in operation at the end of 

2007, including 419 MW in the United States and the remainder 

in Spain, from the following sources: Fred Morse, Abengoa 

Solar, personal communication with REN21, various dates 

during 2010–12; NREL, “Concentrating Solar Power Projects,” 

SolarPaces, www.nrel.gov/csp/solarpaces/by_country.cfm; 2012 

year-end capacity from sources provided in note 1. 

4 “Cost Drivers Fuel Technology Switch for Concentrated Solar,” 

Renewable Energy Focus, July/August 2012, p. 42. 

5 Ibid., p. 42; under development from Elena Dufour, ESTELA, 

personal communication with REN21, 24 January 2013. 

6 Year-end total for 2012 from REE, op. cit. note 1; additions (951 

MW) derived from idem, from CNE, op. cit. note 1, and from REE, 


152

7 Technology dominates from Protermosolar (the Spanish Solar 

Thermal Electricity Industry Association), “Localización de 

centrales solares termoélectricas en España,” April 2012, at www. 

protermosolar.com/boletines/23/Mapa.pdf; the Puerto Errado II 

(30 MW) Linear Fresnel Plant came into operation in late 2012, 

per Beatriz Gonzalez, “Makkah Announces $640m Solar Energy 

Project,” in CSP Today, Weekly Intelligence Brief, 1–8 October 

2012; world’s first from “TÜV Rheinland examines Puerto Errado 2 

plant,” in CSP Today, Weekly Intelligence Brief, 19–26 November 

2012. 

8 A 22.5 MW parabolic trough capacity combined with biomass 

boilers, per “World’s first hybrid CSP-Biomass plant comes 

on-line,” CSP-World.com, 13 December 2012. In addition, a 

commercial-scale pilot hybrid solar power tower-natural gas plant 

began operating in 2012, per “SOLUGAS, a new hybrid solar-gas 

demonstration facility comes on-line,” CSP-World.com, 27 June 

2012. 

9 Protermosolar estimates that policy changes will reduce expected 

revenues by 33%, per “International Investment Funds to Take 

Spain to International Courts,” CSP-World.com, 18 February 2013. 

10 SEIA, op. cit. note 1; Morse, op. cit. note 1. 

11 No new capacity added and more than 1,300 MW (1,317 MW) 

from SEIA, op. cit. note 1; all due on line from Morse, op. cit. 

note 1, and from SEIA and GTM Research, Solar Market Insight 

Report Q3 (Washington, DC: 2012). Plants with about 1,200 MW 

of capacity were under construction at the end of 2012, per CSP 

World, “CSP 2012, A Review,” January 2013, at www.csp-world. 

com. 

12 Estimate of 75% complete from Ivanpah Solar, “Ivanpah Team 

Installs 100,000th Heliostat,” 28 December 2012, at http:// 

ivanpahsolar.com; 140,000 homes from BrightSource Energy, 

“Ivanpah Project Overview,” www.brightsourceenergy.com/ 

ivanpah-solar-project, viewed 7 March 2013. 

13 SEIA and GTM Research, op. cit. note 11; “Abengoa’s 280 MW 

Solana Project 80% Complete,” in CSP Today, Weekly Intelligence 

Brief, 26 November–2 December 2012. This plant will have six 

hours of molten salt thermal energy storage, per Abengoa Solar, 

“Solana, The Largest Solar Power Plant in the World,” www. 

abengoasolar.com/web/en/nuestras_plantas/plantas_en_construccion/estados_unidos#seccion_1, 

viewed 13 March 2013. 

14 The Liddell plant, in New South Wales, first became operational 

in 2004 with 1 MW electric capacity and was expanded to 9 MW th 

by 2008 by Areva Solar; Novatec Solar expanded the plant with 

another 9.3 MW th 

, which was completed in 2012, from “Liddell 

Solar Thermal Station,” op. cit. note 1, and from Novatec Solar, 

op. cit. note 1. There is conflicting information about how much 

of this capacity is electric versus thermal, with one source saying 

that there are 6 MW of power capacity and 18 MW th , per Keith 

Lovegrove et al., “Realising the Potential of Concentrating Solar 

Power in Australia – Summary for Stakeholders,” prepared by IT 

Power (Australia) PTY LTD for the Australian Solar Institute, May 

2012. It is expected that the Chilean plant will substitute more 

than 55% of the diesel fuel that was previously used for the copper 

electro-extraction process at the mine, per Abengoa Solar, op. cit. 

note 1. The plant was inaugurated in November 2012, per Chilean 

Ministry of Energy, op. cit. note 1. 

15 Abengoa Solar, op. cit. note 1; New Energy Algeria, op. cit. note 

1; Egypt’s 20 MW CSP El Kuraymat hybrid plant began operating 

in December 2010, from Fuchs, op. cit. note 1, and from “A 

newly commissioned...,” op. cit. note 1; Ain Beni Mathar began 

generating electricity for the Moroccan grid in late 2010, from 

World Bank, op. cit. note 1, and from Moroccan Office Nationale 

de l’Électricité, op. cit. note 1; TSE 1 began operation in Thailand 

in late 2011, per “Concentrating Solar Power: Thai Solar Energy 

Completes Nation’s First CSP Plant,” SolarServer.com, 7 


16 Plants include China (about 2.5 MW), France (at least 0.75 MW), 

Germany (1.5 MW), India (as much as 5.5 MW), Israel (6 MW), 

Italy (5 MW), and South Korea (0.2 MW). China’s Beijing Badaling 

Solar Tower plant, with 1–1.5 MW capacity (depending on the 

source), began operating in 2012, per “China’s first megawatt-size 

power tower is complete and operational,” CSP-World.com, 30 

August 2012; China information also from the following sources: 

CSP World, “Yanqing Solar Thermal Power (Dahan Tower Plant),” 

www.csp-world.com/cspworldmap/yanqing-solar-thermal-powerdahan-tower-plant; 

“Hainan, China builds second concentrating 

solar project,” GreenProspectsAsia.com, 2 November 2012 (has 

1.5 MW); NREL, “Beijing Badaling Solar Tower,” SolarPaces, 

www.nrel.gov/csp/solarpaces/project_detail.cfm/projectID=253, 

updated 12 February 2013; Dong Chunlei, “Mirror: By Sunlight 

Producing Green Electricity,” Xinmin Evening News, 29 July 2010, 

at www.e-cubetech.com/News_show.asp?Sortid=30&ID=204 

(using Google Translate); France’s capacity includes two small 

Fresnel pilot plants (totaling

ENDNOTES 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – SOLAR THERMAL HEATING AND COOLING 

Thermal Plants, RenewableEnergyWorld.com, 8 May 2013. 

23 Information on 44 MW plant from Piers Evans, “Strong on Solar: 

Australia Eyes CSP Leadership,” RenewableEnergyWorld.com, 29 

August 2012, and from “Kogan Creek Solar Boost Project – Case 

Study,” CleanEnergyActionProject.com, viewed 26 April 2013. 

24 Argentina plans for a 20 MW trough plant, but no target date 

has been set and financing is a challenge, from Jason Deign, 

“Argentina moves into CSP with 20MW plant,” CSP Today, 

November 2012, at http://social.csptoday.com, and from Jason 

Deign, “Argentina Salta Plant Developer Responds,” CSP Today, 

15 February 2013, at http://social.csptoday.com; Chile launched 

a tender in February 2013 for the country’s first CSP plant for 

electricity generation, per “Chile Launches Tender for CSP Plant,” 

CSP-World.com, 28 February 2013; 12 MW (net) Agua Prieta II 

parabolic trough under construction in Mexico is due for completion 

in 2013, per NREL, “Agua Prieta II,” SolarPaces, www.nrel. 

gov/csp/solarpaces/project_detail.cfm/projectID=135, updated 

24 January 2013; four projects have been selected for funding 

under the EU Emissions Trading System framework—in Cyprus, 

Greece, and Spain—that total just over 225 MW (two large-scale 

dish Stirling power plants and two large central receivers), per 

European Commission, “Questions and Answers on the Outcome 

of the First Call for Proposals Under the NER300 Programme,” 

press release (Brussels: 18 December 2012); France’s 12 MW 

Alba Nova 1 linear Fresnel demonstration plant is under construction 

with completion scheduled for 2014, per NREL, “Alba Nova 

1,” SolarPaces, www.nrel.gov/csp/solarpaces/project_detail.cfm/ 

projectID=221, updated 12 February 2013; there is also a 9 MW 

plant in the pipeline in France, per Dufour, op. cit. note 5; Israel 

from CSP World, op. cit. note 11; China plans to begin construction 

on 250 MW of plants with more than 4,000 MW in the pipeline 

awaiting clearly defined policies, per Dufour, op. cit. note 5. 

25 Joyce Laird, “Is CSP Still on Track,” RenewableEnergyFocus.com, 

26 June 2012. 

26 Fred Morse and Florian Klein, Abengoa Solar, Washington, DC 

and Madrid, personal communications with REN21, March 2012; 

Laird, op. cit. note 25. 

27 See, for example, “First harvest of CSP-grown cucumbers in Qatar 

served to COP18 attendees,” CSP-World.com, 11 December 

2012. 

28 ESTELA, Report on The First 5 Years of ESTELA (Brussels: February 

2012); Morse and Klein, op. cit. note 26; Dufour, op. cit. note 1. 

29 Dufour, op. cit. note 5. 

30 Laura Hernandez, “CSP’s Growth Directly Connected to the 

Industry’s Diversification,” RenewableEnergyWorld.com, 24 


31 Dufour, op. cit. note 5 

32 CSP World, op. cit. note 11; alliance from Dufour, op. cit. note 1. 

33 China is expanding its manufacturing capacity, per Dufour, op. 

cit. note 5. Development in China has been relatively slow due to 

challenges such as vast distances between solar resources and 

demand centers, lack of necessary transmission infrastructure, 

and the government’s focus on solar PV and wind power, per Paul 

French, “China to Remain the Dominant Component Supplier to 

CSP ‘Indefinitely’ Says Analyst,” CSP Today, September 2012, at 

http://social.csptoday.com. 

34 “Protermosolar: CSP Spanish Companies involved in 64% of 

the Solar Thermal Power Projects in the World,” HelioCSP.com, 

7 March 2013. By the end of 2012, Abengoa alone had more 

than 740 MW in operation and 910 MW under construction, per 

“Extremadura Solar Complex inaugurated,” in CSP Today, Weekly 

Intelligence Brief, 3–10 December 2012. 

35 Solar Millennium and SolarHybrid from Rikki Stancich, “Solar 

Trust of America Files for Bankruptcy,” in CSP Today, Weekly 

Intelligence Brief, 2–9 April 2012; Steve Leone, “Developer 

of 1,000-MW Blythe Solar Project Files for Chapter 11,” 

RenewableEnergyWorld.com, 2 April 2012; BrightSource from 

CSP World, op. cit. note 11; Siemens from Bank Sarasin, “Working 

Towards a Cleaner and Smarter Power Supply – Prospects for 

Renewables in the Energy Revolution” (Basel, Switzerland: 

December 2012), p. 11. Siemens entered in 2009 by acquiring 

Archimede Solar Energy and Solel Solar Systems, per Bloomberg 

New Energy Finance, “China Redirects State Support to Solar 

Power Developers,” in Energy: Week in Review, 23–29 October 

2012. 

36 One millionth from “Schott Solar Achieves a Milestone,” in CSP 

Today, Weekly Intelligence Brief, 19–26 November 2012; seeking 

bids from “Update 1 – Schott Expects Bids for Solar Ops in 

February – Source,” Reuters, 8 February 2013. 

37 Morse and Klein, op. cit. note 26. 

38 “German Company Unveils Its New Plant Type,” in CSP Today, 

Weekly Intelligence Brief, 26 November–2 December 2012. 

39 “3M and Gossamer inaugurate the world’s largest aperture parabolic 

trough demonstration facility,” CSP-World.com, 3 May 2012. 

40 Solar Power Group and Sopogy from Kris De Decker, “The bright 

future of solar thermal powered factories,” LowTech Magazine, 26 

July 2011, at www.lowtechmagazine.com. See also Solar Power 

Group Web site, www.solar-power-group.de, and Sopogy Web 

site, http://sopogy.com; Abengoa from Abengoa Solar, “Minera El 

Tesoro...” op. cit. note 1. 

41 Paul Denholm and Mark Mehos, Enabling Greater Penetration 

of Solar Power via the Use of CSP with Thermal Energy Storage 

(Golden, CO: NREL, November 2011); Dufour, op. cit. note 5. 

42 Jorge Alcauza, “To store or not to store, that is NOT the question 

(anymore),” CSP-World.com, 1 February 2013. Note that steam 

storage has been operating for years in some plants, per Elisa 

Prieto Casaña, Abengoa Solar, personal communication with 

REN21, April 2013. 

43 Bank Sarasin, Solar Industry: Survival of the Fittest in the Fiercely 

Competitive Marketplace (Basel, Switzerland: November 2011); 

Protermosolar, op. cit. note 7. 

44 Abengoa Energy, “Abengoa Awarded Two CSP Projects by Africa’s 

Department of Energy,” press release (Seville: 7 December 2011); 

Andrew Eilbert, “The Trade-off Between Water and Energy: 

CSP Cooling Systems Dry Out in California,” ReVolt (Worldwatch 

Institute blog), 31 December 2010; Jordan Macknick, Robin 

Newmark, and Craig Turchi, NREL, “Water Consumption Impacts 

of Renewable Technologies: The Case of CSP,” presentation at 

AWRA 2011 Spring Specialty Conference, Baltimore, MD, 18–20 

April 2011; Strategic Energy Technologies Information System 

(SETIS), “Concentrated Solar Power Generation,” http://setis. 

ec.europa.eu/newsroom-items-folder/concentrated-solar-power-generation, 

viewed 24 May 2012. 

45 Fred Morse, Abengoa Solar, Washington, DC, personal communication 

with REN21, March 2013. 

46 Heba Hashem, “Grid Parity Solar: CSP Gains on PV,” CSP Today, 

25 May 2012, at http://social.csptoday.com. 

Solar Thermal Heating and Cooling 

1 Total additions and capacity based on Franz Mauthner, AEE – 

Institute for Sustainable Technologies (AEE-INTEC), Gleisdorf, 

Austria, personal communication with REN21, 14 May 2013, 

and on Werner Weiss and Franz Mauthner, Solar Heat Worldwide: 

Markets and Contribution to the Energy Supply 2011, edition 

2013 (Gleisdorf, Austria: International Energy Agency (IEA) Solar 

Heating and Cooling Programme, May 2013). The Weiss and 

Mauthner report covers 56 countries and is assumed to represent 

95% of the global market. Data provided were 48.1 GW th 

added 

(68.6 million m 2 ) for a total of 234.6 GW th 

, which were adjusted 

upwards by REN21 to 100% for the GSR to reach 50.6 GW th 

added 

(72.2 million m 2 ) and 246.9 GW th 

total. Note that collector area 

(and respective capacity) in operation were estimated by Weiss 

and Mauthner based on official country reports regarding the lifetime 

basis used; where such reports were not available, a 25-year 

lifetime was assumed except in the case of China, where the 

Chinese Solar Thermal Industry Federation (CSTIF) considers lifetime 

to be below 10 years. Also, note that in 2004 the represented 

associations from Austria, Canada, Germany, the Netherlands, 

Sweden, and the United States, as well as the European Solar 

Thermal Industry Federation (ESTIF) and the IEA Solar Heating 

and Cooling Programme agreed to use a factor of 0.7 kW th 

/m 2 to 

derive the nominal capacity from the area of installed collectors; 

this conversion rate is also used in the GSR. 

2 Glazed water collectors accounted for a 96.4% share of the global 

market in 2011 (unglazed water systems accounted for about 

3.2% of the global market in 2011, and glazed and unglazed air 

systems for 0.2%), and global capacity added in 2011 was 46.4 

GW th 

, per Mauthner, op. cit. note 1, and Weiss and Mauthner, op. 

cit. note 1. The 46.4 GW th 

was adjusted upwards by REN21 from 

an estimated 95% of the global market to 100%, to reach 48.9 GW th 

. 

3 Weiss and Mauthner, op. cit. note 1, p. 2. 

154

4 Ibid., p. 2. 

5 Franz Mauthner, AEE-INTEC, Gleisdorf, Austria, personal communication 

with REN21, 4 April 2013. 

6 Based on an estimated global capacity of 211.5 GW th 

glazed water 

collectors at the end of 2011, producing an estimated 183,545 

MWh (660,761 TJ), from Weiss and Mauthner, op. cit. note 1, p. 

23, and adjusted from an estimated 95% of the global market up 

to 100% to reach 222.6 GW th 

and output of 193.2 GWh (695.5 PJ). 

7 Weiss and Mauthner, op. cit. note 1, pp. 9, 17. Figures 15 and 16 

based on data from idem. Global numbers are adjusted upwards 

by REN21 from an estimated 95% of the global market to 100%. 

8 Total solar thermal capacity in operation and gross additions 

based on preliminary estimate of 268.1 GW th 

of total global 

capacity at the end of 2012, and gross capacity additions of 52.6 

GW th 

, from Mauthner, op. cit. note 1, and Weiss and Mauthner, 

op. cit. note 1. Estimates for 2012 are based on available market 

data from Austria, Brazil, China, Germany, and India; data for 

the remaining countries were estimated by Weiss and Mauthner 

according to their trends for the previous two years. Data were 

adjusted upwards by REN21 from an estimated 95% of the global 

market to 100% (i.e., 268.1 GW th 

/0.95 = 282.2 GW th 

) to reach 282 

GW th 

of total solar thermal capacity in operation and 55.4 GW th 

of 

gross additions. 

9 Glazed water collector capacity is based on the above estimate 

of 282.2 GW th 

for all types of collectors in operation worldwide 

at the end of 2012, and the assumption that glazed collectors 

accounted for 90.2% of total global collector capacity in 2012, 

as they did in 2011, per Mauthner, op. cit. note 1, and Weiss and 

Mauthner, op. cit. note 1. (In other words, estimated 2012 glazed 

water collector capacity = 282.2 GW th 

* 0.902 = 254.5 GW th 

.) 

Net additions totaled about 32 GW th 

, derived by subtracting the 

estimated 2011 total (223 GW th 

) from the estimated 2012 total. 

Gross added capacity of glazed water collectors in 2012 is based 

on 55.4 GW th 

gross additions of all collectors and assumption that 

glazed water collectors represented 96.4% of the global market 

in 2012, as they did in 2011, per Mauthner, op. cit. note 1. This 

brings gross additions of glazed water collectors to an estimated 

53.4 GW th 

for 2012. Figure 17 based on data from Weiss and 

Mauthner, op. cit. note 1, and from IEA, SHC Solar Heat Worldwide 

Reports (Gleisdorf, Austria: 2005–2013 editions), revised figures 

based on long-term recordings from AEE-INTEC, supplied by 

Franz Mauthner, 18 April 2013; and from Mauthner, op. cit. note 

1. Global data adjusted upwards from 95% to 100% per Franz 

Mauthner, AEE-INTEC, Gleisdorf, Austria, personal communications 

with REN21, 18 April and 14 May 2013. 

10 China’s installations and total capacity from Zhentao Luo, CSTIF, 

presentation (in Chinese) for Annual CSTIF meeting, Beijing, 

16 December 2012; two-thirds based on 67% share from Franz 

Mauthner, AEE - Institute for Sustainable Technologies, personal 

communication with REN21, 4 April 2013, and on China’s share of 

the estimated 282.2 GW th 

in operation at the end of 2012. China 

added 44.73 GW th 

in 2012, and total capacity increased by 28.3 

GW th 

(from 152.1 GWth to 180.4 GW th 

), implying that 16.43 GW th 

were taken out of service during the year, based on data from 

CSTIF, op. cit. this note. 

11 Solar heaters cost an estimated 3.5 times less than electric water 

heaters and 2.6 less than gas heaters over the system lifetime, 

per CSTIF, cited in Bärbel Epp, “Solar Thermal Competition Heats 

Up in China,” RenewableEnergyWorld.com, 10 September 2012; 

and Bärbel Epp, “Solar Thermal Shake-Out: Competition Heats 

Up in the Chinese Market,” Renewable Energy World, July–August 

2012, pp. 47–49. Annual market growth has increased fairly 

steadily year-by-year, up from 4,480 MW th 

in 2000, per Weiss and 

Mauthner, op. cit. note 1. 

12 Slowdown and since 2009 from Luo, op. cit. note 10; causes from 

Bärbel Epp, “China: Trends in the Largest Solar Thermal Market 

Worldwide,” presentation for Intersolar Europe 2012, Munich, 

June 2012. 

13 Most demand is residential (85% of market in 2011) from Jiuwei 

Wang, Deputy General Manager, Himin, cited in Bärbel Epp, “Solar 

Thermal Scales New Heights in China,” RenewableEnergyWorld. 

com, 27 June 2012; growing share from idem. 

14 Walls and balconies from Epp, op. cit. note 13; 60% and falling 

per Yunbin Le, Deputy General Manager, Linuo Paradigma, cited 

in idem. 

15 EurObserv’ER, Solar Thermal and Concentrated Solar Power 

Barometer (Paris: May 2012), p. 55; Pedro Dias, Deputy Secretary 

General, European Solar Thermal Industry Association (ESTIF), 

Brussels, personal communication with REN21, 4 May 2013. 

In 2011, Europe added 3.92 GW th 

; China and Europe together 

accounted for 92.2% of the global market, per Weiss and Mauthner, 

op. cit. note 1; in 2012, Europe added an estimated 2.2 MW th 

(based on preliminary statistics covering 93% of the market), per 

Dias, op. cit. this note. 

16 EurObserv’ER, op. cit. note 15, p. 65. 

17 Additions in 2011 of 889 MW th 

(1.27 million m 2 ) and in 2012 of 

805 MW th 

, (1.15 million m 2 ) and total capacity of 11.41 GW th 

(16.3 

million m 2 ) from German Federal Ministry for the Environment, 

Nature Conservation and Nuclear Safety (BMU), “Renewable 

Energy Sources 2012,” with data from Working Group on 

Renewable Energy-Statistics (AGEE-Stat), provisional data, 28 

February 2013, at www.erneuerbare-energien.de. Total capacity 

in 2012 was 12,350 MW th 

per ESTIF, provided by Dias, op. cit. 

note 15. Additions and year-end total in 2012 were 805 MW th 

and 

11.5 GW th 

, respectively, from Bundesverband Solarwirtschaft 

e.V. (BSW-Solar), “Statistische Zahlen der deutschen 

Solarwärmebranche (Solarthermie),” February 2013, at www. 

solarwirtschaft.de. The German market peaked towards the end of 

2011 in anticipation of lower incentive rates starting in 2012, per 

ESTIF, Solar Thermal Markets in Europe, Trends and Market Statistics 

2011 (Brussels: June 2012). 

18 Dias, op. cit. note 15. Austria’s market shrank 11% in 2012 

following a 17% decline in 2011, from Mauthner, op. cit. note 

10. However, Austria achieved the milestone of 5 million square 

metres installed in September, from Solid, “5 Million Square 

Meters of Solar Thermal Collectors in Austria Installed,” SDH Solar 

District Heating/ Intelligent Energy Europe, Newsletter October 

2012 (25 October 2012), at www.solar-district-heating.eu. 

19 Data for 2011 from ESTIF, op. cit. note 17, p. 7; 2012 and despite 

economic turmoil from Dias, op. cit. note 15; rising electricity and 

heating oil prices per Greek Solar Industry Association (EBHE), 

cited in Yorgos Karahalis, “Solar Water Heating Exports Proves a 

Success for Recession-Mired Greece,” Reuters, 29 April 2013. 

20 More diversified from Bank Sarasin, Solar Industry: Survival of the 

Fittest in a Fiercely Competitive Marketplace (Basel, Switzerland: 

November 2011); growth in developing markets from Mauthner, 

op. cit. note 10, and from Dias, op. cit. note 15. Note that the market 

for small-scale applications in Denmark has been declining, 

and growth has been led by solar district heating plants, which 

account for the vast majority of the Danish market, from Dias, op. 

cit. note 15. 

21 Weiss and Mauthner, op. cit. note 1. 

22 Raquel Costa, “Turkey: Kutay Ülke Speaks About Ezinç and the 

Turkish Market during ESTEC 2011,” SolarThermalWorld.org, 26 

January 2012. 

23 Eva Augsten, “Turkey: High-quality Solar Hot Water Systems 

Across Earthquake Area,” SolarThermalWorld.org, 26 November 

2012. 

24 Based on 0.91 million m 2 added for total of 6.92 million m 2 in 

operation at the end of February, from Government of India 

Ministry of New and Renewable Energy (MNRE), “Achievements— 

Cumulative deployment of various renewable energy systems/ 

devices in the country as on 28/02/2013,” http://mnre.gov.in/ 

mission-and-vision-2/achievements/, viewed 24 March 2013. 

25 Japanese Solar System Development Association, cited in Bärbel 

Epp, “Japan: Stagnating Market Despite Renewables’ Image 

Boost,” SolarThermalWorld.org, 30 October 2012. Note that Japan 

added about 0.12 GW th 

in fiscal year 2011 for a cumulative total 

of about 3.7 GW th 

at the end of the fiscal year, from Matsubara 

Hironao, Institute for Sustainable Energy Policy, personal communication 

with REN21, April 2013; South Korea’s installations 

peaked in 2009 and have slowed since; 54,732 m 2 were added in 

2011 for a total of 1,649,322 m 2 at year’s end, from KEMCO (Korea 

Energy Management Corporation), New & Renewable Energy 

Statistics 2011 (2012 Edition). 

26 Thailand subsidised 11,155 m 2 in 2012, up from 9,879 m 2 in 2011, 

from Thailand Department of Alternative Energy Development 

and Efficiency, cited in Stephanie Banse, “Thailand: Government 

Continues Subsidy Programme in 2013,” SolarThermalWorld.org, 

15 February 2013. 

27 Based on 0.8 million m 2 added and 8.11 million m 2 cumulative 

at year’s end, from DASOL (National Solar Heating Department), 

ABRAVA (Brazilian Association for HVAC&R), “Sector’s Data,” 


28 DASOL, ABRAVA, “Sector’s Data 2011,” 2012, at 

www.dasolabrava.org.br. 

02 


ENDNOTES 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Solar Thermal Heating and Cooling 

29 Argentina from Eva Augsten, “Argentina: Solar Water Heaters 

for Rural Schools,” SolarThermalWorld.org, 29 October 2011, 

and from Eva Augsten, “Argentina: ASADES’ Network for Solar 

Energy,” SolarThermalWorld.org, 6 April 2012; Mexico, Chile, and 

Uruguay from DENA (German Energy Agency), cited in “Overview 

of Solar Power and Heat Markets,” RenewablesInternational.net, 1 

October 2013. In Chile, more than 10,000 m 2 were installed within 

two years, more than doubling cumulative capacity, in response to 

tax rebates, from Asociacion Chilena de Energia Solar (ACESOL), 

Christian Antunovic, “Columna de Presidente de ACESOL 

Publicada en le Tercera,” 10 January 2012, at www.acesol.cl/ 

noticias/columna-de-presidente-de-acesol-publicada-en-la-tercera 

(using Google Translate). Chile added about 11 MW th 

(15,869 

m 2 ) in 2012, for a total of 17.3 MW th 

(24,685 m 2 ) installed during 

2010–12, from Ministry of Energy of Chile, Estudio de Mercado de 

la Industria Solar Térmica en Chile y Propuesta Metodológica para 

su Actualización Permanente (Santiago: September 2012), p. 10. 

30 The United States had 13,987 MW th 

of unglazed water collectors 

in operation in 2011, from Weiss and Mauthner, op. cit. note 1. 

31 The United States added 138.1 MW th 

of glazed water collectors 

in 2011 compared with 157.8 MW th 

in 2010. Data for 2011 from 

Weiss and Mauthner, op. cit. note 1; data for 2010 from Werner 

Weiss and Franz Mauthner, Solar Heat Worldwide: Markets and 

Contribution to the Energy Supply 2010, edition 2012 (Gleisdorf, 

Austria: IEA Solar Heating and Cooling Programme, 2012). The 

United States ranked 10th worldwide in 2009 for total capacity 

of glazed water collectors, 12th in 2010, and 13th in 2011, from 

Weiss and Mauthner, op. cit. note 1 and past editions of the same 

report. 

32 “California Solar Statistics” (www.californiasolarstatistics.ca.gov), 

cited in Bärbel Epp, “USA: More Incentives and Marketing in 

California,” SolarThermalWorld.org, 21 August 2012. 

33 “Small-scale Renewables: Big Problem, Small Solution,” in REW 

Guide to North American Renewable Energy Companies 2013, 

special supplement in Renewable Energy World, March–April 

2013, pp. 18–24. 

34 Weiss and Mauthner, op. cit. note 1. Egypt has a small market, 

with most systems installed on new buildings of the upper-middle 

class and hotels near the Red Sea, and the latest data show Egypt 

adding about 8,000 m 2 /year, from Ahmed El Sherif, Egyptian Solar 

Energy Development Association (SEDA), cited in Eva Augsten, 

“Egypt: Solar Water Heaters to Help Cut Down Energy Subsidies,” 

SolarThermalWorld.org, 11 October 2012; and 42,046 high-pressure 

SWH systems were installed in South Africa from June 2008 

to 29 November 2012, with 13,548 systems installed in the first 11 

months of 2012; South Africa also had about 200,000–300,000 

low-pressure SWHs, based on number of claims processed by 

Deliotte for Eskom, provided by Mike Mulcahy, Green Cape, South 

Africa, personal communication with REN21, 27 March 2013. 

35 Based on increase from 7,000 m 2 to 92,000 m 2 , from Eva Augsten, 

“Egypt: Solar Water Heaters to Help Cut Down Energy Subsidies,” 

SolarThermalWorld.org, 11 October 2012. 

36 Israel, Jordan, and Lebanon rankings from Weiss and Mauthner, 

op. cit. note 1; 13% penetration and market drivers from 

Lebanese Center for Energy Conservation, Central Bank of 

Lebanon, and Ministry of Energy and Water, cited in Pierre El 

Khoury, “Solar Water Heaters in Lebanon: An Emerging $100 

Million Market,” RenewableEnergyWorld.com, 11 January 2013; 

Lebanese Republic, Ministry of Energy and Water, United Nations 

Development Programme, and Global Environment Facility, “The 

Residential Solar Water Heaters Market in Lebanon in 2011” 

(Beirut: September 2012). 

37 Weiss and Mauthner, op. cit. note 1. Also among the top 10 were 

Turkey, Germany, Australia, China, and Jordan. Rankings were 

slightly different considering capacity for glazed and unglazed 

capacity combined: Cyprus remained in first place, followed by 

Austria, Israel, Barbados, and Greece. For unglazed systems, 

Australia ranked first for per capita capacity in 2011, followed by 

Austria, the United States, the Czech Republic, and Switzerland. 

38 Ibid. Considering newly installed capacity for all water collectors 

(glazed and unglazed), Israel ranked first, followed by Australia, 

China, Austria, and Cyprus. 

39 Ibid.; Uli Jakob, Solem Consulting/ Green Chiller, personal 

communication with REN21, April 2013. For example, combi-systems, 

which provide both domestic hot water and space heating, 

accounted for more than 40% of the market in Germany and 

Austria as of 2011, per Weiss and Mauthner, op. cit. note 1. 

40 This is particularly true in Austria, Germany, and Switzerland, 

where policies and high electricity prices create favourable 

conditions, per “Solar + Heat Pump Systems,” Solar Update (IEA 

Solar Heating and Cooling Programme), January 2013. 

41 Market share from Weiss and Mauthner, op. cit. note 1, p. 3; 

established markets from Weiss and Mauthner, op. cit. note 31. 

42 Other heat sources from Jan-Olof Dalenbäck and Sven Werner, 

CIT Energy Management AB, Market for Solar District Heating, 

supported by Intelligent Energy Europe (Gothenburg, Sweden: 

September 2011, revised July 2012); cost-competitive from 

Rachana Raizada, “Renewables and District Heating: Eastern 

Europe Keeps It Warm,” RenewableEnergyWorld.com, 13 

September 2013. In Denmark, solar district heat systems cost 

about USD 0.05/kWh (EUR 0.04/kWh) without subsidies as of 

2010, and not much more in Austria, from Jan-Olof Dalenbäck, 

CIT Energy Management AB, Success Factors in Solar District 

Heating, prepared for Intelligent Energy Europe (Gothenburg, 

Sweden: December 2010); and started at USD 0.04/kWh (EUR 

0.03/kWh) in Denmark in early 2013, from Andreas Häberle, PSE 

AG, Freiburg, personal communication with REN21, 25 April 2013. 

43 Systems across Europe from Solar District Heating, SDHtakeoff—Solar 

District Heating in Europe, Global Dissemination Report, 

edited by Solites, Steinbeis Research Institute for Solar and 

Sustainable Thermal Energy Systems, supported by Intelligent 

Energy Europe (Stuttgart, Germany: 2012), p. 2; France from Eva 

Augsten, “France: Solar District Heating with Energy Costs Around 

0.06 EUR/kWh,” SolarThermalWorld.org, 4 December 2012; 

Austrian Climate and Energy Fund, cited in Bärbel Epp, “Austria: 

More and Less Successful Subsidy Schemes,” SolarThermalWorld. 

org, 18 January 2013; “Eibiswald District Heating Doubles its 

Roof-top Solar Thermal Plant to 2,450 m2,” SDH Solar District 

Heating/Intelligent Energy Europe, Newsletter February 2013 (6 

February 2013), at www.solar-district-heating.eu; Solid, “5 Million 

Square Meters of Solar Thermal Collectors in Austria Installed,” 

SDH Solar District Heating/ Intelligent Energy Europe, Newsletter 

October 2012 (25 October 2012), at www.solar-district-heating. 

eu; Braedstrup Fjernvarme, “Braedstrup Solar Park in Denmark 

is Now a Reality,” SDH Solar District Heating/ Intelligent Energy 

Europe, Newsletter October 2012 (25 October 2012), at www. 

solar-district-heating.eu; Eva Augsten, “Norway: Solar Collectors 

Support District Heating,” SolarThermalWorld.org, 11 February 

2013; Rachana Raizada, “Renewables and District Heating: 

Eastern Europe Keeps It Warm,” RenewableEnergyWorld.com, 

13 September 2013; 175 systems and 319 MW th 

from Weiss and 


44 Planned and Denmark 75% from Solar District Heating, SDHtakeoff…,” 

op. cit. note 42, p. 2; Europe’s 10 largest from Weiss and 


45 The University of Pretoria’s 672 m 2 solar thermal system provides 

warm water for apartments for 550 students, from Stephanie 

Banse, “South Africa: University of Pretoria’s 672 m 2 Solar 

Thermal System,” SolarThermalWorld.com, 12 April 2012; China’s 

“Utopia Garden” project in Dezhou covers 10 blocks of apartment 

buildings with 5.025 m 2 combined with seasonal storage beneath 

the complex, per Bärbel Epp, “China: Utopia Garden Sets New 

Standard for Architectural Integration,” SolarThermalWorld. 

org, 10 April 2012; 97% of community’s needs was over a 

one-year period, per Natural Resources Canada, “Canadian 

Solar Community Sets New World Record for Energy Efficiency 

and Innovation,” press release (Okotoks, Alberta: 5 October 

2012); first large seasonal storage from “Solar Community Tops 

World Record,” in Solar Update (IEA Solar Heating and Cooling 

Programme), January 2013, p. 16; Government of Canada, 

“Drake Landing Solar Community,” brochure, www.dlsc.ca/ 

DLSC_Brochure_e.pdf, viewed 23 March 2013. 

46 Europe accounted for about 80% of installed systems worldwide 

as of 2012. All based on data from Jakob, op. cit. note 39, and 

from Uli Jakob, “Status and Perspective of Solar Cooling Outside 

Australia,” in Proceedings of the Australian Solar Cooling 2013 

Conference, Sydney, 12 April 2013. Note that roughly 600 

solar cooling systems were installed worldwide in 2010, per 

H.M. Henning, “Solar Air-conditioning and Refrigeration— 

Achievements and Challenges,” Conference Proceedings 

of International Conference on Solar Heating, Cooling and 

Buildings—EuroSun 2010, Graz, Austria, 2010. 

47 IEA, Technology Roadmap, Solar Heating and Cooling (Paris: 

OECD/IEA, 2012), p. 11. Several hundred small cooling kits were 

sold in these countries in 2011. 

156

48 Daniel Rowe, Commonwealth Scientific and Industrial Research 

Organisation (CSIRO), Australia, personal communication with 

REN21, 29 April 2013. 

49 Data from IEA, Solar Heating and Cooling Programme, cited 

in Stephanie Banse, “Solar Process Heat: Higher Yield than in 

Domestic Applications,” SolarThermalWorld.org, 17 August 2012. 

50 Tannery Heshan Bestway Leather, a German joint venture, uses 

solar thermal technology to produce heat for industrial processes 

and hot water for worker dormitories, per Jiuwei Wang, Deputy 

General Manager, Himin, cited in Epp, op. cit. note 13; Bärbel Epp, 

“USA: Contractor Runs 7,804 m 2 Collector System at Prestage 

Foods Factory,” SolarThermalWorld.org, 19 April 2012; as of early 

2012, Heineken planned to installed systems in Austria, Spain, 

and Portugal to provide heat at two breweries and a malting plant, 

expected to cover 18–24% of process heat demand, from Eva 

Augsten, “Europe: Heineken Brewery to Install Three Big Solar 

Plants,” SolarThermalWorld.org, 18 April 2012. 

51 An estimated 11,316 m 2 of large-scale projects were approved in 

Austria during 2012, with process heat representing the largest 

share of capacity (40%), followed by district heating (33%), and 

heating of commercial buildings (19%); also four solar cooling 

projects totaling 863 m 2 , from Austrian Climate and Energy Fund, 

cited in Bärbel Epp, “Austria: More and Less Successful Subsidy 

Schemes,” SolarThermalWorld.org, 18 January 2013; most Thai 

government commercial solar thermal subsidies are going to 

process heat applications in the industrial sector, followed by 

hotels, farms, and hospitals. The subsidy covers commercial solar 

thermal installations that are combined with waste heat from air 

conditioners or boilers, per Thailand Department of Alternative 

Energy Development and Efficiency, cited in Stephanie Banse, 

“Thailand: Government Continues Subsidy Programme in 2013,” 

SolarThermalWorld.org, 15 February 2013. 

52 Weiss and Mauthner, op. cit. note 1, p 3. 

53 Stephanie Banse and Joachim Berner, “Lowering Costs, 

Maintaining Efficiency,” Sun & Wind Energy, December 2012, pp. 

62–65; Chris Laughton, “Great Britain: Insolvency of Collector 

Manufacturer After the PV Crash,” SolarThermalWorld.org, 21 

June 2012. 

54 Bärbel Epp, “Solar Industry in Upheaval,” Sun & Wind Energy, 

December 2012, pp. 28–39. 

55 Ibid. 

56 In Cyprus, for example, greatly in response to the decline in 

the new home market, the industry is shifting from a focus on 

systems for new construction to replacement of older systems, per 

Bärbel Epp, “Cyprus: System Replacements Increase Efficiency,” 

SolarThermalWorld.org, 5 December 2012; in the U.K., companies 

are turning to repairs of existing systems, per Chris Laughton, 

“Great Britain: Insolvency of Collector Manufacturer after the PV 

Crash,” SolarThermalWorld.org, 21 June 2012; close production 

capacity from Epp, op. cit. note 54, pp. 28–39, and from 

Bank Sarasin, op. cit. note 20; Bärbel Epp, “Germany: Schüco 

Closes Bielefeld Collector Factory,” SolarThermalWorld.org, 17 

December 2012; meet demand outside of Europe from Epp, op. 

cit. note 54; Joachim Berner, “Spanish Collector Manufacturers 

Expand Exports or Abandon Production,” SolarThermalWorld. 

org, 5 July 2011; Eva Augsten, “Spain: Export Helps Solar Thermal 

Industry Survive,” SolarThermalWorld.org, 12 January 2012; 

Bärbel Epp, “ISH 2011: Solar Trends in the Heating Industry,” 

SolarThermalWorld.org, 31 March 2011. Production by many EU 

manufacturers declined in 2011 relative to 2010; for example, 

GreenOneTec production fell from 800,000 m 2 to 700,000 

m 2 , and Ritter Solar fell from 136,000 m 2 to 100,000 m 2 , per 

EurObserv’ER, Solar Thermal and Concentrated Solar Power 

Barometer (Paris: May 2012), p. 66. 

57 Epp, op. cit. note 54; Berner, op. cit. note 56; Augsten, op. cit. 

note 56; Schüco International KG (Germany) made the decision 

to close its Bielefeld factory in December 2013, with plans to shut 

it down at the end of March, per Bärbel Epp, “Germany: Schüco 

Closes Bielefeld Collector Factory,” SolarThermalWorld.org, 17 


58 Rapid consolidation from Bärbel Epp, “Solar Thermal Competition 

Heats Up in China,” RenewableEnergyWorld.com, 10 September 

2012; top 100 from Epp, “Solar Thermal Shake-Out...,” op. cit. 

note 11, pp. 47–49; 1,000 companies from Yunbin Li, Linuo 

Paradigma, cited in Epp, “Solar Thermal Competition...,” op. cit. 

this note. 

59 Stephanie Banse and Joachim Berner, “Lowering Costs, 

Maintaining Efficiency,” Sun & Wind Energy, December 2012, pp. 

62–65. 

60 Largest companies from Epp, “Solar Thermal Competition…,” op. 

cit. note 58; vertical integration from Bärbel Epp, “China: Trends 

in the Largest Solar Thermal Market Worldwide,” presentation for 

Intersolar Europe 2012, Munich, June 2012. 

61 Epp, “Solar Thermal Shake-Out…,” op. cit. note 11, pp. 

47–49; Bärbel Epp, “China: Sunrain Group Goes Public,” 

SolarThermalWorld.org, 29 May 2012. 

62 Installed domestically and China’s export business increased 

12-fold between 2005 and 2011, per CSTIF/Chinese Renewable 

Energy Industries Association, cited in Bärbel Epp, “China: 

Industry Increased Export Business 12-fold,” SolarThermalWorld. 

org, 2 February 2012; an increasing number of companies 

manufacturing both (with most of these companies in China and 

India), from Bärbel Epp, “India and China Are Setting the Pace,” 

Sun & Wind Energy, December 2011, pp. 48–64. 

63 Based on 2010 surface area production levels, from Epp, “India 

and China...,” op. cit. note 62, pp. 48–64. 

64 Ibid., pp. 48-64. 

65 Epp, op. cit. note 54, pp. 28–39. 

66 Michael Mulcahy, Green Cape, personal communication with 

REN21, April 2013. 

67 Lebanese Center for Energy Conservation, Central Bank of 

Lebanon, and Ministry of Energy and Water, cited in Pierre El 

Khoury, “Solar Water Heaters in Lebanon: An Emerging $100 

Million Market,” RenewableEnergyWorld.com, 11 January 2013. 

68 Bärbel Epp, Solrico, personal communication with REN21, 3 

April 2012; Bärbel Epp, Solrico, “Cost Reduction – an Important 

Objective,” in Bank Sarasin, op. cit. note 20; Bärbel Epp, “Can 

Europe Compete in the Global Solar Thermal Market?” Renewable 

EnergyWorld.com, 21 March 2011. 

69 EurObserv’ER, op. cit. note 20, p. 67, 69. 

70 Banse and Berner, op. cit. note 59, pp. 62–65. 

71 Stephanie Banse, “Poised for Growth,” Sun & Wind Energy, 

December 2012, pp. 30–35. 

72 Stephanie Banse, “Hard-earned Upward Trend,” Sun & Wind 

Energy, December 2012, pp. 40–41. 

73 Rising interest from Eva Augsten, “Europe/Asia: Solar Cooling 

Gains Traction,” SolarThermalWorld.org, 3 September 2012; 

new to sector from Uli Jakob, “Overview Market Development 

and Potential for Solar Cooling with Focus on the Mediterranean 

Area,” in Proceedings of Fifth European Solar Energy Conference, 

Marseille, November 2011; Hitachi began offering solar cooling 

kits in 2011 and Mitsubishi sells new compact adsorption chillers, 

per Eva Augsten, “Europe/Asia: Solar Cooling Gains Traction,” 

SolarThermalWorld.org, 3 September 2012. Sorption chillers 

above 35 kW capacity are manufactured primarily in Asia; new 

small and medium-scale systems were developed only within the 

past decade, and standardised solar cooling kits are produced by 

several companies in Europe as well as Asia. These include EAW 

(Germany), Climatewell (Sweden), AGP, Pink (Austria), Tranter 

Solarice (Germany), Yazaki (Japan), Thermax (India), and Jiansu 

Huineng (China), from Jakob, op. cit. this note. 

74 Trouble competing and costs declined from Jakob, op. cit. note 

46; potential for further cost reductions from Daniel Mugnier, 

TECSOL, “Quality assurance & support measures for solar cooling 

with IEA SHC task 48: overview and first results,” in Proceedings 

of the Australian Solar Cooling Conference 2013, North Ryde, 

Sydney, Australia, 11–12 April 2013. 

75 Mugnier, op. cit. note 74; standard in Australia from M. 

Goldsworthy, CSIRO, “AS5389 Solar Air-conditioning Australian 

Standard – Overview of development,” in Proceedings of the 

Australian Solar Cooling Conference 2013, North Ryde, Sydney, 

Australia, 11–12 April 2013. 

02 


ENDNOTES 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Wind Power 

Wind Power 

1 A total of 44,799 MW was added in 2012, bringing the year-end 

total to 282,587 MW, according to Global Wind Energy Council 

(GWEC), Global Wind Report – Annual Market Update 2012 

(Brussels: April 2013); 44,951 MW added for total of 285,761 

MW from Navigant’s BTM Consult, International Wind Energy 


2013); 44,712 MW added from C. Ender, “Wind Energy Use in 

Germany – Status 31.12.2012,” DEWI Magazine (German Wind 

Energy Institute), February 2013, p. 31. Up 19% (18.7%) based 

on data for 2011 and 2012 from GWEC, op. cit. this note, and from 

Navigant’s BTM Consult, op. cit. this note. Figure 18 based on 

GWEC, op. cit. this note, and on Navigant’s BTM Consult, op. cit. 

this note. 

2 Key markets with policy uncertainty included the United States, 

Europe (Spain, Italy, France, Portugal, the U.K.), Asia (India, 

Japan), and Australia. 

3 Estimate of 86% based on GWEC, op. cit. note 1, and on 

Navigant’s BTM Consult, op. cit. note 1. 

4 Figures of 44, 64, and 24 countries from GWEC, op. cit. note 

1; 24 also from Navigant’s BTM Consult, op. cit. note 1. The 24 

countries include 15 in Europe, four in the Americas, three in Asia, 

plus Australia and Turkey. Note that GWEC has 79 countries in its 

database, per GWEC, personal communication with REN21, April 

2013, and that there are 100 countries or regions with wind power 

capacity, per World Wind Energy Association (WWEA), World Wind 

Energy Report 2012 (Brussels: May 2013). 

5 Estimate of 24.9% from Navigant’s BTM Consult, op. cit. note 1; 

24.7% from GWEC, op. cit. note 1. 

6 GWEC, op. cit. note 1. 

7 The United States added 13,131 MW, per American Wind 

Energy Association (AWEA), “AWEA U.S. Wind Industry Annual 

Market Report, Year Ending 2012” (Washington, DC: April 2013), 

Executive Summary. It was followed by China (12,960 MW), 

Germany (2,415 MW), India (2,336 MW), and the United Kingdom 

(1,897 MW), per GWEC, op. cit. note 1, and Navigant’s BTM 

Consult, op. cit. note 1. Note that data from both sources agree for 

all countries except the U.K., which added 1,958 MW according to 

Navigant’s BTM Consult. 

8 Additions were Italy (1,273 MW), Spain (1,122 MW), Brazil (1,077 

MW), Canada (935 MW), and Romania (923 MW), per GWEC, op. 

cit. note 1. Rankings are the same with only slight differences 

in added capacity, per Navigant’s BTM Consult, op. cit. note 1. 

Mexico was in the top 10 according to WWEA, op. cit. note 4. 

9 Share of the global market was 26.6% and share of total global 

capacity was 37.5%, based on data from GWEC, op. cit. note 1; 

share of global market was 28.5% and share of the global total 

was 38.5%, based on data from Navigant’s BTM Consult, op. cit. 

note 1. 

10 AWEA, op. cit. note 7. Figure 19 based on various sources 

throughout this section. 

11 The United States added 13,131 MW in 2012, according to AWEA, 

op. cit. note 7; 6.8 MW were added in 2011, per AWEA, “Annual 

industry report preview: supply chain, penetration grow,” Wind 

Energy Weekly, 30 March 2012. 

12 Vince Font, “AWEA Reports 2012 the Strongest Year on 

Record for U.S. Wind Energy, Continues Success Uncertainty,” 

RenewableEnergyWorld.com, 23 October 2012. 

13 Wind accounted for more than 45% of U.S. electric capacity 

additions in 2012 (based on 12,799 MW of wind capacity added), 

per U.S. Energy Information Administration (EIA), “Wind Industry 

Brings Almost 5,400 MW of Capacity Online in December 2012,” 

www.eia.gov/electricity/monthly/update/?scr=email, viewed 25 

April 2013. Wind was nearly 41% and natural gas accounted for 

33% of U.S. capacity additions in 2012, based on data from U.S. 

Federal Energy Regulatory Commission, Office of Energy Projects, 

“Energy Infrastructure Update for December 2012” (Washington, 

DC: 2013). Wind accounted for 42% (based on preliminary 13,124 

MW added), according to AWEA, “4Q report: Wind energy top 

source for new generation in 2012; American wind power installed 

new record of 13,124 MW,” Wind Energy Weekly, 1 February 2013. 

The United States ended 2012 with 60,007 MW, per AWEA, op. 

cit. note 7. 

14 Texas added 1,826 MW, followed by California (1,656 MW), 

Kansas (1,440 MW), Oklahoma (1,127 MW), and Illinois (823 MW), 

per AWEA, “4Q report..,” op. cit. note 13; more than 12 GW in 

Texas and 15 states from AWEA, op. cit. note 7. 

15 China added an estimated 12,960 MW of capacity in 2012, from 

Chinese Wind Energy Association (CWEA), with data provided 

by Shi Pengfei, personal communication with REN21, 14 March 

2013; from GWEC, op. cit. note 1; and from Navigant’s BTM 

Consult, op. cit. note 1. Note that 15,780 MW of capacity was 

brought into operation (including capacity previously installed), 

per China Electricity Council, with data provided by Pengfei, op. 

cit this note. Share of world market was about 27% in 2012, down 

from 43% in 2011 and 49.5% in 2010, per GWEC, op. cit. note 1. 

Decline relative to 2009–2011 based on data from GWEC, op. cit. 

note 1. 

16 Shruti Shukla, GWEC, personal communication with REN21, 13 

February 2013; Zoë Casey, “The Wind Energy Dragon Gathers 

Speed,” Wind Directions, June 2012, pp. 32, 34. 

17 CWEA, op. cit. note 15. 

18 Figure of 75,324 MW installed by year-end from GWEC, op. 

cit. note 1, and from CWEA, op. cit. note 15. About 14.5 GW of 

installed capacity was not yet officially operating at year’s end, 

based on data from CWEA and from China Electricity Council, 

provided by Pengfei, op. cit. note 15; most of the capacity added 

in 2012 was feeding the grid, per Steve Sawyer, GWEC, personal 

communication with REN21, 2 April 2013. Note that the process 

of finalising the test phase and getting a commercial contract with 

the system operator takes time, accounting for delays in reporting. 

The difference is explained by the fact there are three prevailing 

statistics in China: installed capacity (turbines installed according 

to commercial contracts); construction capacity (constructed 

and connected to grid for testing); and operational capacity 

(connected, tested, and receiving tariff for electricity produced). 

Liming Qiao, GWEC, personal communication with REN21, 26 


19 Figures of 100.4% and 37%, and exceeding nuclear from China 

Electricity Council, provided by Pengfei, op. cit. note 15. 

20 CWEA, op. cit. note 15; 14 with more than 1 GW from GWEC, op. 

cit. note 1. 

21 The EU added 11,895 MW for a total of 106,041 MW, from 

European Wind Energy Association (EWEA), Wind in Power: 

2012 European Statistics (Brussels: February 2013); new record 

from GWEC, “Release of Global Wind Statistics: China, US vie for 

market leader position at just over 13 GW of new capacity each” 

(Brussels: 11 February 2013). All of Europe added 12,744 MW for 

a total of 109,581 MW, from EWEA, op. cit. this note. Accounting 

for closings and repowering, the EU’s net capacity increase was 

lower, per idem. 

22 EWEA, op. cit. note 21. Wind’s share of capacity added was up 

from 21.4% in 2011, and its share of total electric generating 

capacity in 2012 was up from 2.2% in 2000 and 10.4% in 2011. 

23 NREAP targets for end-2012 totaled 107.6 GW, from EWEA, op. 

cit. note 21, and from Shruti Shukla, GWEC, personal communication 

with REN21, 13 February 2013. Market in 2012 does not 

reflect growing uncertainty because most capacity was previously 

permitted and financed, per EWEA, op. cit. note 21. 

24 Some emerging markets are spurred by rapid increases in 

electricity demand, a desire for independence from Russian 

gas, good wind resources, and new support policies, from Tildy 

Bayar, “Can Emerging Wind Markets Compensate for Stagnating 

European Growth?” RenewableEnergyWorld.com, 25 January 

2013, and from EWEA, “Eastern Winds: Emerging European 

Wind Power Markets” (Brussels: February 2013); challenges from 

Steve Sawyer, GWEC, personal communication with REN21, 4 


25 Germany installed 2,415 MW in 2012, EWEA, op. cit. note 21; 

year-end total of 31,315 MW (31,035 MW onshore plus 280 MW 

offshore) and highest additions since 2002 or 2003 based on 

data from German Federal Ministry for the Environment, Nature 

Conservation and Nuclear Safety (BMU), “Renewable Energy 

Sources 2012,” data from Working Group on Renewable Energy- 

Statistics (AGEE-Stat), provisional data (Berlin: 28 February 2013), 

p. 18. Much of the capacity added was for repowering: 1,433 MW 

of new turbines replaced 626 MW of old ones, per “German wind 

sector strong again in 2012,” RenewablesInternational.net, 1 

February 2012. 

26 The United Kingdom added 1,897 MW (854 MW offshore) for 

a total of 8,445 MW, from EWEA, op. cit. note 21, and from 

GWEC, op. cit. note 1. It added 1,958 MW for a total of 9,113 MW, 

according to Navigant’s BTM Consult, op. cit. note 1. 

27 Italy added 1,273 MW for a total of 8,144 MW; Spain added 1,122 

MW for a total of 22,796 MW; Romania added 923 MW for a total 

158

of 1,905 MW; and Poland added 880 MW for a total of 2,497 MW, 

all from EWEA, op. cit. note 21. Italy added 1,272 MW for a total of 

7,998 MW, and Spain added 1,112 MW for a total of 22,462 MW, 

from Navigant’s BTM Consult, op. cit. note 1. 

28 EWEA, op. cit. note 21. 

29 India added an estimated 2,336 MW in 2012 for a year-end total of 

18,421 MW, from GWEC, op. cit. note 1. This compares with about 

3 GW installed during 2011, from GWEC, Global Wind Report: 

Annual Market Update 2011 (Brussels: March 2012). 

30 Steve Sawyer, GWEC, personal communication with REN21, 5 

December 2012; Natalie Obiko Pearson, “India Wind Investment 

May Stall on Tax-Break cut, Industry Says,” Bloomberg News, 2 

April 2012, at www.businessweek.com. 

31 Asia (almost entirely China and India) added 15,510 MW in 2012, 

and North America (not including Mexico) added 14,059 MW, 

per GWEC, op. cit. note 1. Europe (not including Russia or Turkey) 

added 12,238 MW (EU-27 added 11,895 MW), per EWEA, op. cit. 

note 21. Note that Europe lost its position as top regional installer 

in 2012, per Navigant’s BTM Consult, op. cit. note 1. 

32 Brazil added an estimated 1,077 MW in 2012 for a total of 

2,508 MW and 4 million, from GWEC, op. cit. note 1, and from 

Associacão Brasileira de Energia Eólica, Boletim Mensal de Dados 

do Setor Eólico – Publico,” January 2013, p. 2, at www.abeeolica. 

org.br. The strong market in Brazil has attracted European 

developers as subsidies decline at home, per Vittorio Perona, Grup 

BTG Pactual SA, cited in Stephan Nielsen, “Cheapest wind energy 

spurring renewables deals in Brazil,” RenewableEnergyWorld. 

com, 29 January 2013. 

33 Wind increasing faster than grid from Steve Sawyer, GWEC, 

personal communication with REN21, 4 September 2012. 

34 Mexico added 801 MW for a total of 1,370 MW, from GWEC, 

op. cit. note 1; largest project from Lindsay Morris and Jennifer 

Runyon, “Wind in 2012: booming in North America; tops 100 

GW in Europe,” RenewableEnergyWorld.com, 21 December 

2012. Mexico added 0.4 GW for a total of 1.5 GW, per Navigant’s 

BTM Consult, op. cit. note 1. The difference between GWEC and 

Navigant data is probably a matter of accounting (in which year 

capacity is counted). 

35 GWEC, op. cit. note 1, p. 15. 

36 Canada added 935 MW for total of 6,200 MW, from GWEC, op. 

cit. note 1; provinces from Richard Baillie, “Is it crunch time 

for Canada’s wind sector?” RenewableEnergyWorld.com, 27 

December 2012. Canada added more capacity during 2011 than 

2012, per GWEC, op. cit. note 1. 

37 Tunisia (added 50 MW for a total of 104 MW) and Ethiopia from 

GWEC, op. cit. note 1; South Africa from GWEC, “Release of Global 

Wind Statistics: China, US vie for market leader position at just 

over 13 GW of new capacity each” (Brussels: 11 February 2013). 

38 Turkey added 506 MW for a total of 2,312 MW, per EWEA, op. 

cit. note 21; Australia added 358 MW for a total of 2,584 MW, per 

GWEC, op. cit. note 1. 

39 The 13 countries include 10 in Europe plus China, Japan, and 

South Korea, with 1,296 MW added worldwide for a total 5,415 

MW in operation at the end of 2012, per GWEC, op. cit. note 1, p. 

40. Ten countries had offshore capacity with a total of 5.1 GW, per 


40 Europe added 1,166 MW of offshore capacity for a year-end total 

of 4,995 MW; 10 countries include Belgium with a total of 379.5 

MW, Denmark (921 MW); Finland (26.3 MW), Germany (280.3 

MW), Ireland (25.2 MW), the Netherlands (246.8 MW), Norway 

(2.3 MW), Portugal (2 MW), Sweden (163.7 MW), the United 

Kingdom (2,947.9 MW), and a European total (4,995 MW), per 

GWEC, op. cit. note 1, p. 40. The global offshore market added 

1,131 MW in 2012, with 66% of this in the U.K., according to 


41 The United Kingdom’s share of additions based on 854 MW added 

in the U.K. and a total of 1,166 MW added in Europe, followed by 

Belgium (185 MW added), Germany (80 MW), and Denmark (46.8 

MW), all from GWEC, op. cit. note 1, p. 40; “London Array: All the 

Latest News and Developments,” January 2013, at www.londonar- 

ray.com/wp-content/uploads/LONDON-ARRAY-NEWS-JAN-2013- 

Email-version.pdf; Sally Bakewell, “Largest Offshore Wind Farm 

Generates First Power in U.K.,” Bloomberg, 29 October 2012, at 

www.renewableenergyworld.com. 

42 All from GWEC, op. cit. note 1, p. 40; China also from CWEA, with 

data provided by Liming Qiao, GWEC, personal communication 

with REN21, 26 April 2013. Note that China added 127 MW (7 

projects) of intertidal and near-short capacity in 2012, per CWEA. 

China added three projects with a combined total of 110 MW, 

per Navigant’s BTM Consult, op. cit. note 1. Note that offshore 

capacity was added in the United Kingdom (756 MW), Belgium 

(184.5 MW), China (110 MW), and Germany (80 MW) only, per 

Navigant’s BTM Consult, , op. cit. note 1. Totals differ between 

GWEC and Navigant for China, for which Navigant has 329 MW 

total in operation, Denmark (833 MW), the U.K. (2,861 MW), and 

includes the Republic of Ireland (25 MW). 

43 Cost considerations include cost of infrastructure such as 

sub-stations or grid connection points as well as licencing and 

permitting costs. 

44 Fantanele-Cogealac wind farm in Romania, per Morris and 

Runyon, op. cit. note 34; “Caithness Shepherds Flat Commences 

Official Operations; Becomes One of the World’s Largest Wind 

Farms,” PRNewswire.com, 22 September 2012. 

45 Clients from Sarasin, “Working Towards a Cleaner and Smarter 

Power Supply: Prospects for Renewables in the Energy 

Revolution” (Basel, Switzerland: December 2012); Australia et 

al. from Stefan Gsänger, WWEA, Bonn, personal communication 

with REN21, 29 February 2012; Europe also from Richard 

Cowell, “Community Wind in Europe – Strength in Diversity?” 

WWEA Quarterly Bulletin, December 2012, pp. 10–15, and 

from Tildy Bayar, “Community Wind Arrives Stateside,” 

RenewableEnergyWorld.com, 5 July 2012. 

46 Iowa projects (1.6–3.2 MW in size) from AWEA, “American wind 

power reaches 50-gigawatt milestone: 2012 sets red-hot pace, 

but layoffs hit supply chain amid policy uncertainty for 2013,” 

Wind Energy Weekly, 10 August 2012; Australia from Taryn Lane 

(Hepburn Wind & Embark), “Community Wind: The Australian 

Context,” WWEA Quarterly Bulletin, September 2012, pp. 22–25. 

47 Shota Furuya, Institute for Sustainable Energy Policies, “Energy 

Policy Reform and Community Power in Japan,” WWEA Quarterly 

Bulletin, September 2012, pp. 26–29. 

48 Stefan Gsänger, WWEA, Bonn, personal communication with 

REN21, 1 April 2013. 

49 Drivers from Andrew Kruse, Southwest Windpower Inc., personal 

communication with REN21, 21 May 2011; from Andrew Kruse, 

Endurance Wind Power Inc., Surrey, Canada, personal communication 

with REN21, 21 April 2013; and from WWEA, Small World 

Wind Power Report 2013 (Bonn: March 2013), Summary. Feed-in 

tariffs in the United Kingdom, Italy, Canada, and the United States 

are driving the distributed-scale market. The most common is the 

50 kW class, which is often used by rural farmers to both offset 

energy production and for investing, per Kruse, Endurance Wind 

Power Inc., op. cit this note. 

50 Off-grid and mini-grid from WWEA, op. cit. note 49, and from 

Simon Rolland, “Campaigning for Small Wind—Facilitating 

Off-Grid Uptake,” Renewable Energy World, March-April 2013, pp. 

47–49. 

51 Pike Research, “Small Wind Power,” www.pikeresearch.com/ 

research/small-wind-power, viewed March 2013; WWEA, op. cit. 

note 49. 

52 Kruse, Endurance Wind Power Inc., op. cit. note 49. 

53 Ibid. 

54 Note that the total excludes data for Italy and India, both of which 

are important markets, per WWEA, op. cit. note 49. 

55 WWEA, op. cit. note 49; WWEA, “WWEA Releases the 2013 Small 

Wind World Report Update,” press release (Husum/Bonn: 21 

March 2013). 

56 AWEA, op. cit. note 7. 

57 WWEA, op. cit. note 49. 

58 More than 2.6% is a 2013 forecast based on 2012 installed 

capacity, per Navigant’s BTM Consult, op. cit. note 1; more than 

3% from Gsänger, op. cit. note 48. 

59 EWEA, op. cit. note 21. 

60 Unless otherwise noted, 2012 data from EWEA, op. cit. note 21; 

Denmark 2012 data from GWEC, op. cit. note 1, p. 34; Portugal 

2012 and 2011 data from APREN - Portuguese Renewable Energy 

Association and from Redes Energéticas Nacionais (REN), “Dados 

Técnicos Electricidade 2012,” at www.centrodeinformacao.ren. 

pt/PT/InformacaoTecnica/Paginas/DadosTecnicos.aspx; Germany 

from BMU, op. cit. note 25; 2011 data for Denmark, Spain, and 

Ireland from EWEA, op. cit. note 21. Spain covered an average of 

17.2% of its production with wind, and Denmark covered 29.5%, 

per MERCOM, Market Intelligence Report, “Wind Energy,” 5 

02 


ENDNOTES 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Wind Power 

February 2013. The output in Spain over a 100-day period from 

November to early February averaged 26% of total electricity, 

enough to cover all households in Spain, per Spanish Wind Energy 

Association, cited in National Public Radio, Morning Edition, 

“Spain’s Wind Farms Break Energy Record,” 8 February 2013, at 

www.npr.org. 

61 German states included Mecklenburg-Vorpommern (54.3%), 

Sachsen-Anhalt (49.8%), Schleswig-Holstein (49.5%), and 

Brandenburg (49.3%); in addition, Niedersachsen is at 25.5% 

of its electricity needs, all based on year-end capacity and from 

Ender, op. cit. note 1, p. 38; South Australia from Giles Parkinson, 

“Wind, Solar Force Energy Price Cuts in South Australia,” 

RenewEconomy.com, 3 October 2012. 

62 Figure of 3.5% of U.S. generation from EIA, op. cit. note 13; 2011 

share of generation from AWEA, “Annual industry report preview: 

supply chain, penetration grow,” Wind Energy Weekly, 30 March 

2012; state 2012 data from AWEA, “Wind Now 10% of Electricity 

in Nine States, Over 20% in Iowa, South Dakota,” Wind Energy 

Weekly, 15 March 2013; AWEA, op. cit. note 7. Note that AWEA 

statistics counted all MWh generated in a state as going to that 

state. 

63 Bloomberg New Energy Finance (BNEF), “Wind turbines prices 

fall to their lowest in recent years,” press release (London and New 

York: 7 February 2011); materials included steel and cement, per 

IRENA, Renewable Power Generation Costs in 2012: An Overview 

(Abu Dhabi: January 2013), p. 31; BNEF, “Onshore wind energy 

to reach parity with fossil-fuel electricity by 2016,” press release 

(London and New York: 10 November 2011); JRC Scientific and 

Technical Reports, 2011 Technology Map of the European Strategic 

Energy Technology Plan (Petten, The Netherlands: Institute for 

Energy and Transport, JRC, European Union, 2011); Ryan Wiser et 

al., “Recent developments in the levelized cost of energy from U. 

S. wind power projects” (Golden, CO: National Renewable Energy 

Laboratory (NREL), February 2012). 

64 David Appleyard,” Supply Chain Quality Play – Industry Switches 

to Oversupply,” Renewable Energy World, Wind Technology 

Supplement, March-April 2012, pp. 5–7; “Vestas Sells Factory to 

Titan Wind Energy,” Reuters, 13 June 2012; GWEC, op. cit. note 1. 

65 Estimate of 20–25% in western markets and more than 35% in 

China (compared with 2008 peak prices) from BTM Consult—A 

Part of Navigant, “Preliminary Data Indicates Change in Global 

Wind Turbine OEM Market Leader,” press release (Chicago, IL: 

11 February 2013); average global decline of 25% from Eduardo 

Tabbush, BNEF, cited in Stephan Nielsen, “Uruguay Boosts Windpower 

Estimate to 1,000 Megawatts by 2015,” Bloomberg, 21 

June 2012, at www.renewableenergyworld.com. Preliminary data 

suggest that quotes in the United States fell about 25% relative to 

peak prices, per IRENA, op. cit. note 63, p. 31. Over the two years 

leading up to late 2012, the price of onshore wind turbines fell by 

10–15%, per Sarasin, op. cit. note 45. Data from CWEA suggest 

that turbine prices in China stabilised in 2011, per Michael Taylor, 

IRENA, personal communication with REN21, April 2013, with 

reference to IRENA, op. cit. note 63, p. 31. 

66 Data analyzed by BNEF and from a survey of 38 developers and 

service providers in more than 24 markets showed that operations 

and maintenance contracts for onshore wind farms fell from EUR 

30,900/MW in 2008 to EUR 19,200/MW in 2012, per Louise 

Downing, “Wind Farm Operating Costs Fall 38% in Four Years, 

BNEF Says,” Bloomberg, 1 November 2012, at www.renewableenergyworld.com. 

67 In Australia, unsubsidised renewable energy is now cheaper 

than electricity from new-build coal- and gas-fired power 

stations (including cost of emissions under new carbon pricing 

scheme), per BNEF, “Renewable energy now cheaper than new 

fossil fuels in Australia,” 7 February 2013, at http://about.bnef. 

com/2013/02/07/renewable-energy-now-cheaper-than-new-fossil-fuels-in-australia/. 

The best wind projects in India can generate 

power and the same costs as coal-fired power plants and cheaper 

in some locations, per Ravi Kailas, CEO of India’s third-largest 

wind farm developer, cited in Natalie Obiko Pearson, “Wind 

Installations ‘Falling Off a Cliff’ in India,” Bloomberg, 26 November 

2012, at www.renewableenergyworld.com; cheaper in some 

locations from Greenko Group Plc, cited in Natalie Obiko Pearson, 

“In Parts of India, Wind Energy Proving Cheaper Than Coal,” 

Bloomberg, 18 July 2012, at www.renewableenergyworld.com; 

United States from Michael Taylor, IRENA, personal communication 

with REN21, April 2013. Note that a recent study concluded 

that, although wind power in Europe has higher upfront costs in 

EUR/MWh than natural gas, the net cost of wind is lower than that 

of combined-cycle gas turbines, per Ernst & Young, “Analysis of 

the value creation potential of wind energy policies,” July 2012, at 

www.ey.com. 

68 Offshore wind remains about twice as expensive as onshore, 

according to BNEF, and is 26–75% more expensive (assuming 

15% higher capacity factor), according to IRENA; both cited 

in Robin Yapp, “Offshore Wind Embarks Beyond Europe,” 

RenewableEnergyWorld.com, 31 December 2012. In western 

countries, offshore costs about 2.3 times more than onshore, per 


69 GE had a 15.5% share of the world market and Vestas 14%, 

per Navigant’s BTM Consult, op. cit. note 1. Note that Make 

Consulting of Denmark puts Vestas in the lead with 14.6% compared 

with GE’s 13.7%, per Alex Morales, “Vestas Vies with GE for 

Wind Market Lead in Rival Studies,” RenewableEnergyWorld.com, 

26 March 2013. 

70 Navigant’s BTM Consult, op. cit. note 1. Note that Make 

Consulting puts Siemens third (10.8%), followed by Gamesa 

(8.2%), Enercon (7.8%) and Suzlon (6.5%), per Morales, op. cit. 

note 69. 

71 Navigant’s BTM Consult, op. cit. note 1. Make Consulting’s ranking 

of the final four (all Chinese) in the same, per Morales, op. cit. note 

69. Figure 20 based on Navigant’s BTM Consult, op. cit. note 1. 

72 Figure of 550 from AWEA, op. cit. note 7; the share was up from 

35% in 2005–2006, and from 60% in 2010 to 67% in 2011, 

per Ryan Wiser et al., 2011 Wind Technologies Market Report, 

prepared for NREL (Golden, CO: August 2012), p. v. According to 

data from the U.S. International Trade Commission and analysis 

from the U.S. Department of Energy, the domestic content of 

wind turbines was less than 25% prior to 2005 and approximately 

67% at the end of 2011, cited in AWEA, op. cit. note 7; transport 

costs from AWEA, cited in “U.S. Wind Manufacturing,” Renewable 

Energy World, November-December 2012, p. 61. 

73 GWEC, op. cit. note 29. The United Kingdom, for example, added 

significant manufacturing capacity for on- and offshore wind in 

2012, per GWEC, op. cit. note 1, p. 64. 

74 Brazil from Morris and Runyon, op. cit. note 34; India from GWEC, 

op. cit. note 1, p. 44. Another source puts India’s total at 24, 

nearly double the number in 2010, from Indian Wind Turbine 

Manufacturers Association (IWTMA) data, cited in Natalie Obiko 

Pearson, “GE Wind Indian Wind Share as Suzlon, Vestas Suffer 

Market Shift,” Bloomberg, 12 November 2012, at www.renewableenergyworld.com. 

75 Rising costs, overcapacity, and reduced support from “Vestas 

Sells Factory to Titan Wind energy,” op. cit. note 64. For 

example, Siemens delayed a turbine factory in Hull, U.K., and 

eliminated a number of jobs, from Ben Warren and Klair White, 

Ernst and Young, “Renewable Energy Review: United Kingdom,” 

RenewableEnergyWorld.com, 1 January 2013, and from Richard 

Weiss, “Siemens to Cut 615 US Wind Energy Jobs as New Orders 

Dry Up,” Bloomberg, 19 September 2012, at www.renewableenergyworld.com; 

turbine maker Fuhrländer filed for bankruptcy, per 

BNEF, “Europe Skirmishes With America on Airline Emissions, and 

With China on Solar,” Energy: Week in Review, 18–24 September 

2012. 

76 Carl Levesque, “U.S. wind energy layoffs continue in Colorado, 

Iowa as federal policy uncertainty continues” in AWEA, Wind 

Energy Weekly, August 24, 2012; also, BP announced in early 

2013 its intention to exit the U.S. wind industry, following its exit 

from solar a year earlier, per James Montgomergy, “BP Selling 

US Wind Unit, Pares Renewable Energy Interests to Fuels,” 

RenewableEnergyWorld.com, 3 April 2013. 

77 Restructure from Pearson, op. cit. note 67; layoffs from Nichola 

Groom, “Tax break extension breathes new life into U.S. wind 

power,” Reuters, 3 January 2013; Alex Morales and Stefan Nicola, 

“Vestas, Gamesa Advance After U.S. Extends Wind Power Tax 

Break,” Bloomberg, 2 January 2013, at www.renewableenergyworld.com; 

kW machines from “More job losses at Vestas 

as it closes China factory and restructures Asia businesses,” 

RenewableEnergyFocus.com, 27 June 2012. 

78 “Sinovel to Put 351 Workers on Leave Amid Slump in Turbine 

Sales,” Bloomberg.com, 15 November 2012; edge of collapse 

from Appleyard, op. cit. note 64, pp. 5–7; overcapacity and 

smaller manufacturers from GWEC, op. cit. note 1. 

79 BNEF, op. cit. note 75; Natalie Obiko Pearson and Anurag Joshi, 

“Wind Turbine Manufacturer Suzlon to Default on Bond Debt,” 

Bloomberg, 11 October 2012, at www.renewableenergyworld. 

com. 

80 Navigant’s BTM Consult, “Preliminary Data Indicates Change in 

160

Global Wind Turbine OEM Market Leader,” press release (Chicago, 

IL: 11 February 2013). For example, Suzlon (India) plans to build in 

Brazil and South Africa, per BNEF, “Star shines bright for China as 

Europe’s subsidies fade,” Energy: Week in Review, 9–16 July 2012. 

81 Package deals from Stephan Nielsen, “China Grabs Share in 

Latin America Wind with Cheap Loans,” Bloomberg.com, 20 

November 2012; subsidiaries and partnerships from Elisa 

Wood, “China Focuses on Overseas Wind Partnerships,” 

RenewableEnergyWorld.com, 2 October 2012. 

82 Navigant’s BTM Consult, op. cit. note 80. 

83 Longer blades and lower wind speeds from David Appleyard, 

“Turbine Tech Turn Up: Machines for an Evolving Market,” 

RenewableEnergyWorld.com, 19 June 2012. Concrete is cheaper 

than steel and can be manufactured locally; Enercon has 

manufactured its own concrete rings for several years, and JUWI 

and Acconia Windpower are starting to opt for concrete, using 

it in Spain, Latin America, and United States. Concrete has the 

potential to reduce tower costs by 30–40%, from Crispin Aubrey, 

“Towers: Concrete Challenges Steel,” Wind Directions, September 

2012, pp. 48–50, and from AWEA, op. cit. note 13; carbon fibre 

for blades from David Appleyard and Dan Shreve, “Wind Turbine 

Blades,” Renewable Energy World, March-April 2012, p. 8. 

84 Gamesa, “Gamesa launches a new turbine, the G114-2.0 MW: 

maximum returns for low-wind sites,” press release (Vizcaya, 

Spain: 12 April 2012); Suzlon 2.1 MW S111 low-wind turbine from 

David Appleyard, “New Turbine Technology: Key Players On- and 

Offshore,” RenewableEnergyWorld.com, 11 April 2013; GE, “GE 

Developing Wind Blades That Could Be the “Fabric” of Our Clean 

Energy Future,” press release (Niskayuna, NY: 28 November 

2012). Turbines for low-wind sites have enabled capacity factors 

to be maintained, or even raised, even as less-ideal wind resource 

sites are developed. 

85 Automated from James Lawson, “Blade Materials,” Renewable 

Energy World, Wind Technology Supplement, May-June 2012, pp. 

5–6; shift back from Navigant’s BTM Consult, op. cit. note 80. 

86 Average size delivered to market (based on measured rated 

capacity) was 1,847 kW in 2012, up an average 170 kW over 2011, 


87 Germany from MERCOM, op. cit. note 60; Denmark (3,080 kW), 

United States (1,930 kW), China (1,646 kW), and India (1,229 kW) 


88 Offshore Europe’s increase based on 3.5 MW average size turbine 

connected to the grid during 2011 from EWEA, The European 

Offshore Wind Industry: Key 2011 Trends and Statistics (Brussels: 

January 2012), p. 15; and on 4 MW average in 2012 from EWEA, 

The European Offshore Wind Industry – Key Trends and Statistics 

2012 (Brussels: January 2013), p. 3; 31 countries from EWEA, 

idem, p. 4. 

89 Most manufacturers and 7.5 GW from JRC Scientific and Technical 

Reports, op. cit. note 63. Note that Siemens introduced a 6 MW 

direct-drive machine for the offshore market in 2011, and Vestas 

and Mitsubishi announced production of 7 MW machines, while 

Enercon is offering a 7.5 MW machine exclusively for on-shore use. 

Vestas has a multi-stage gear drive, and Mitsubishi a hydraulic 

drive, per Steve Sawyer, GWEC, technology contribution to REN21, 

March 2012; Enercon from “E-126 / 7.5 MW,” www.enercon.de/ 

en-en/66.htm; Stefan Gsänger, WWEA, personal communication 

with REN21, May 2012. Even larger turbines based on Siemens 

testing a 6 MW machine and considering developing a 10 MW 

turbine, from Stefan Nicola and Gelu Sulugiuc, “Vestas and 

Mitsubishi Planning to Build Biggest Offshore Wind Turbine,” 

Bloomberg, 27 November 2012, at www.renewableenergyworld. 

com; Vestas announced plans to develop an 8 MW machine with 

Mitsubishi Heavy Industries and DONG Energy for offshore use, 

from idem, and from Vestas, “DONG Energy advances its involvement 

in Vestas’ prototype testing of the V164-8.0 MW turbine in 

Østerild” (Aarhus: 11 December 2011). 

90 “REpower Commissions its Tallest Wind Turbine,” Renewable 

Energy Focus, July/August 2012, p. 10; also getting higher from 

AWEA, cited in David Shaffer, “Wind Farm Towers Rise to New 

Heights, With More Power,” IndependentMail.com, 12 September 

2012; “Siemens Unveils ‘World’s Longest’ Wind Turbine Blade,” 

RenewableEnergyFocus.com, 14 June 2012. 

91 In Europe, average water depth for new wind farms was slightly 

lower than in 2011, but these trends continue in general, from 

EWEA, op. cit. note 88. 

92 Yoshinori Ueda, Japan Wind Energy Association and Japan 

Wind Power Association, personal communication with REN21, 

14 February 2013. The United States and United Kingdom 

announced plans in 2012 to develop floating offshore turbines, per 

“Wind Updates – UK-US Boost Floating Tech,” Renewable Energy 

World, Wind Technology Supplement, May-June 2012, p. 20. 

93 EWEA, op. cit. note 88, p. 3. 

94 Frank Wright, “Offshore Potential – Five Years to Grow 

Offshore Wind,” Renewable Energy World, September-October 

2012, pp. 85–88. Korea’s largest ship builders—including 

Daewoo Shipbuilding and Marine Engineering, Hyundai Heavy 

Industries, Samsung Heavy Industries, and STX shipbuilding—are 

moving onto wind power, building five installation 

vessels for offshore wind facilities, per Korea Wind Energy 

Industry Association, cited in “Korea Shifts to a Wind Energy 

Powerhouse,” 27 June 2012, at www.evwind.es/2012/06/27/ 

korea-shifts-to-a-wind-energy-powerhouse/19402/. 

95 Pike Research, op. cit. note 51. By the end of 2011, more than 

330 manufacturers around the world offered commercial systems 

and more than 300 companies supplied parts and services, per 

WWEA, op. cit. note 49. 

96 WWEA, op. cit. note 49. 

97 Natalie Obiko Pearson, “RRB Energy Targets African Market with 

Smaller Wind Turbines,” Bloomberg, 24 July 2012, 

at www.renewableenergyworld.com. 

98 Bayar, op. cit. note 45. 

99 Table 2 based on the following: 

POWER SECTOR 

Bio-power: Bioenergy levelised costs of energy for power 

generation vary widely with costs of biomass feedstock (typically 

USD 0.50–9/GJ), complexity of technologies, plant capacity 

factor, size of plant, co-production of useful heat (CHP), regional 

differences for labour costs, life of plant (typically 30 years), 

discount rate (typically 7%), etc. In some non-OECD countries, 

lack of air emission regulations for boilers means capital costs are 

lower due to lack of control equipment. So before developing a 

new bioenergy plant, individual cost analysis is essential. Details 

of cost analyses can be found at: IRENA, Renewable Power 

Generation Costs in 2012 – An Overview (Abu Dhabi: 2013); 

Frankfurt School – UNEP Collaborating Centre for Climate & 

Sustainable Energy Finance and Bloomberg New Energy Finance 

(BNEF), Global Trends in Renewable Energy Investment 2012 

(Frankfurt: 2012); O. Edenhofer et al., eds. IPCC Special Report on 

Renewable Energy Resources and Climate Change Mitigation, 

prepared by Working Group III of the Intergovernmental Panel on 

Climate Change (Cambridge, U.K. and New York: Cambridge 

University Press, 2011); Joint Research Centre of the European 

Commission (JRC), 2011 Technology Roadmap of the European 

Strategic Energy Technology Plan (Petten, The Netherlands: 2011). 

Geothermal power: Capacity factor and per kWh costs from 

Edenhofer et al., op. cit. this note, pp. 425–26 and 1004–06. Cost 

ranges are for greenfield projects, at a capacity factor of 74.5%, a 

27.5-year economic design lifetime, assuming a discount rate of 

7%, and using the lowest and highest investment cost, respectively; 

capital cost range was derived from Edenhofer et al., 

(condensing flash: USD 2,110–4,230; binary: USD 2,470–6,100) 

and from worldwide ranges (condensing flash: USD 2,075–4,150; 

and binary: USD 2,480–6,060) for 2009 from C.J. Bromley, et al., 

“Contribution of geothermal energy to climate change mitigation: 

The IPCC renewable energy report,” in Proceedings World 

Geothermal Congress 2010, Bali, Indonesia, 25–30 April 2010, at 

www.geothermal-energy.org/pdf/IGAstandard/WGC/2010/0225. 

pdf. (All monetary units converted from USD 2005 to USD 2012 

dollars.) IRENA estimates the LCOE of a typical project to be USD 

0.09–0.14/kWh, per IRENA, op. cit. this note, p. 17. In 2010, the 

International Energy Agency (IEA) estimated the LCOE of a binary 

plant to be USD 0.08–0.11/kWh, per IEA Energy Technology 

Systems Analysis Programme, Geothermal Heat and Power, 

Technology Brief E07 (Paris: May 2010), Table 5. 

Hydropower: Characteristics based on Edenhofer et al., op. cit. 

this note, and on Arun Kumar, Alternate Hydro Energy Centre, 

Indian Institute of Technology Roorkee, personal communication 

with REN21, March 2012. For grid-based projects, capital cost 

ranges and LCOE for new plants of any size provided in table are 

from IEA, Deploying Renewables: Best and Future Policy Practice 

(Paris: 2011). Note that Edenhofer et al., op. cit. this note, 

estimates capital costs in the range of USD 1,175–3,500, and 

LCOE in the range USD 0.021–0.129/kWh assuming a 7% 

discount rate. IRENA notes a LCOE range of USD 0.012–0.19/kWh 

for projects larger than 1 MW, with 80% of evaluated projects in 

the range of USD 0.018–0.085/kWh, and a median of 

02 


ENDNOTES 02 MARKET AND INDUSTRY TRENDS BY TECHNOLOGY – Characteristics and Costs 

99 

Table 2 (continued) 

USD 0.05/kWh, from IRENA, op. cit. this note, p. 46. Investment 

costs for hydropower projects can be as low as USD 400–500/kW, 

but most realistic projects today are in the range of USD 

1,000–3,000 per kW, per Edenhofer et al., op. cit. this note, p. 

1006. Off-grid capital costs and LCOE from REN21, Renewables 

2011 Global Status Report (Paris: 2011). Note that the cost for 

hydropower plants is site-specific and may have large variations. 

Small capacity plants in some areas even may exceed these limits. 

The cost is dependent on several factors especially plant load 

factor, discount rate, and life of the project. Normally, small-scale 

hydro projects last 20–50 years compared to large-scale hydro 

plants, which may last 30–80 years. Hydro facilities that are 

designed to be load-following (rather than baseload) have lower 

capacity factors and therefore higher generation costs per kWh, 

on average. 

Ocean Energy: All data are from Edenhofer et al., op. cit. this note. 

Note that this is based on a very small number of installations to 

date; LCOE range assumes a 7% discount rate. Electricity 

generation costs are in the range of USD 0.31–0.39/kWh (EUR 

0.24–0.30/kWh), from Sarasin, Working Towards a Cleaner and 

Smarter Power Supply: Prospects for Renewables in the Energy 

Revolution (Basel, Switzerland: December 2012), p. 11. 

Solar PV: Rooftop solar systems: peak capacities are based on 

Europe and drawn from European Photovoltaic Industry 

Association (EPIA), Market Report 2011 (Brussels: January 2012), 

and from EPIA, personal communication with REN21, 3 April 

2012. Capacity factor from IRENA, op. cit. this note, p. 56. Note 

that values outside of this range are possible for exceptional sites 

(higher) or where siting is suboptimal (lower); adding tracking 

systems can raise these capacity factors significantly, from 

IRENA, idem. Capital costs based on: average of EUR 1,750/kW 

(using exchange rate of EUR 1 = USD 1.3) for residential systems 

up to 10 kWp, in fourth quarter of 2012, from German Solar 

Industry Association (BSW-Solar), “Statistic Data on the German 

Solar Power (Photovoltaic) Industry,” February 2013, at www. 

solarwirtschaft.de; U.S. range of 4,300–5,000 by end of 2012, 

with low end being average cost for non-residential systems (USD 

5.04/W) and high end being average cost for residential systems 

(USD 4.27/W), from U.S. Solar Energy Industries Association 

(SEIA) and GTM Research, “U.S. Solar Market Grows 76% in 2012; 

Now an Increasingly Competitive Energy Source for Millions of 

Americans Today,” press release (Washington, DC and Boston, 

MA: 14 March 2013); Japan based on average of about 437,000 

JPY/kW for systems of 10–50 kW, and about 375,000 JPY/kW 

(converted using JPY 1 = USD 0.099) for systems of 50–500 kW, 

from Japanese Ministry of Economy, Trade and Industry (METI), 

“Procurement Prices Calculation Committee,” www.meti.go.jp/ 

committee/gizi_0000015.html (in Japanese); typical global range 

for industrial systems based on EUR 1,150–2,000/kW (converted 

using EUR 1 = USD 1.3), from Gaëtan Masson, EPIA and IEA 

Photovoltaic Power Systems Programme (IEA-PVPS), personal 

communication with REN21, April 2013. Note that costs were 

down significantly from the second quarter of 2012, when capital 

costs in Germany for fixed-tilt rooftop systems averaged USD 

2,200/kW, and in the United States average prices for residential 

systems were USD 5,500/kW, with a range of USD 4,000–8,000, 

per IRENA, op. cit. this note, pp. 7, 54, 55. Note that the IEA puts 

capital costs for small-scale systems in the range of USD 

2,400–6,000/kW, per IEA, Tracking Clean Energy Progress 2013 

(Paris: OECD/IEA, 2013), p. 30. LCOE costs for OECD and 

non-OECD are 2012 USD, from lowest to highest, and based on 

7% cost of capital, from IRENA, op. cit. this note, from IRENA 

Renewable Cost Database, 2013, and from Michael Taylor, IRENA, 

personal communication with REN21, May 2013; Europe based on 

costs in the range of EUR 0.12–0.29/kWh (converted using EUR 1 

= USD 1.3) for residential, commercial, and industrial projects in 

the south and north of France, Germany, Italy, Spain, and the 

United Kingdom, from EPIA database, provided by Masson, op. 

cit. this note. Ground-mounted utility-scale systems: peak capacity 

from EPIA, Market Report 2011, op. cit. this note, from David 

Renne, International Solar Energy Society (ISES), personal 

communication with REN21, April 2013, and from Denis Lenardic, 

pvresources.com, personal communication with REN21, April 

2013; also see relevant section and endnotes in Market and 

Industry Trends by Technology. Conversion efficiency low of 10% is 

for amorphous silicon and high of 30% is for concentrating PV, 

from Gaetan Masson, EPIA and IEA-PVPS, personal communication 

with REN21, 21 March 2013. Note that conversion efficiency 

for ground-mounted utility-scale was noted as 15–27% in EPIA, 

Market Report 2011, op. cit. this note. Capital costs based on the 

following: typical global costs based on 1,000–1,500 Euros/kW 

(converted using EUR 1 = USD 1.3) from Masson, April 2013, op. 

cit. this note; USD 2,270/kW was the weighted average in the 

United States at the end of 2012, from SEIA and GTM Research, 

op. cit. this note; Japan based on average capital cost of 280,000 

JPY/kW (converted using JPY 1 = USD 0.099) for systems over 1 

MW, from Japanese METI, op. cit. this note; and China (USD 

2,200/kW) and India (USD 1,700/kW) from IRENA, op. cit. this 

note, pp. 54–55. Note that the U.S. range in the second quarter of 

2012 was USD 2,000–3,600, with a capacity weighted average of 

USD 2,900/kW, from IRENA, op. cit. this note. Also note that the 

IEA puts capital costs for large-scale systems in the range of USD 

1,300–3,500/kW, from IEA, Tracking Clean Energy…, op. cit. this 

note, p. 30. LCOE based on the following: OECD and non-OECD 

cost ranges are 2012 USD, with 7% discount rate, from IRENA, 

Renewable Power Generation Costs in 2012…, op. cit. this note, 

from IRENA Renewable Cost Database, 2013, and from Michael 

Taylor, IRENA, personal communication with REN21, May 2013; 

Europe based on LCOE in the range of EUR 0.11–0.26/kWh (using 

exchange rate of EUR 1 = USD 1.3) for ground-mounted systems 

in the south and north of France, Germany, Italy, Spain, and the 

United Kingdom, from EPIA database, provided by Masson, op. 

cit. this note. Note that the LCOE in Thailand is estimated to be in 

the range of USD 0.15–0.18/kWh, based on input from project 

developers and former Thai Minister of Energy Piyasvasti 

Amranand, per Chris Greacen, Palang Thai, personal communication 

with REN21, April 2013. While PV module prices are global, 

balance of system costs are much more local. Also, note that 

prices have been changing rapidly. 

CSP: Characteristics including plant sizes from European Solar 

Thermal Electricity Association (ESTELA), personal communication 

with REN21, 22 March 2012 and 24 January 2013; from 

Protermosolar, the Spanish Solar Thermal Electricity Industry 

Association, April 2012; and based on parabolic trough plants that 

are typically in the range of 50–200 MW; tower 20–70 MW; and 

Linear Fresnel in the range of 1–50 MW, per Bank Sarasin, Solar 

Industry: Survival of the Fittest in the Fiercely Competitive 

Marketplace (Basel, Switzerland: November 2011). Note that 

multiple systems can be combined for higher-capacity plants. 

Capacity factors based on ESTELA, op. cit. this note, and on 

Michael Mendelsohn, Travis Lowder, and Brendan Canavan, 

Utility-Scale Concentrating Solar Power and Photovoltaics Projects: 

A Technology and Market Overview (Golden, CO: U.S. National 

Renewable Energy Laboratory (NREL), April 2012); on 20–28% 

capacity factor for plants without storage and 40–50% for plants 

with 6–7.5 hours storage, from U.S. Department of Energy, 

SunShot Vision Study, prepared by NREL (Golden, CO: February 

2012), p. 105; on 20–30% for parabolic trough plants without 

storage and 40% to as high as 80% for tower plants with 6–15 

hours of storage, from IRENA, Renewable Power Generation Costs 

in 2012…, op. cit. this note, p. 19; and on the capacity factor of 

parabolic trough plants with six hours of storage, in conditions 

typical of the U.S. Southwest estimated to be 35–42%, per 

Edenhofer et al., op. cit. this note, pp. 1004, 1006. Note that the 

Gemasolar plant, which began operation in Spain in 2011, has 

storage for up to 15 hours, per Torresol Energy, “Gemasol,” www. 

torresolenergy.com/TORRESOL/gemasolar-plant/en. Capital costs 

based on: U.S. parabolic trough and tower plants without storage 

in the range of USD 4,000–6,000/kW, and trough and towers with 

storage in the range of USD 7,000–10,000/kW, from U.S. 

Department of Energy, Loans Programs Office, www.lgprogram. 

energy.gov, provided by Fred Morse, Abengoa Solar, personal 

communication with REN21, April 2013; and on parabolic trough 

plants with storage capital costs of USD 4,700–7,300/kW in OECD 

countries, and 3,100–4,050/kW in non-OECD (based on costs of 

five projects), and costs with storage all from IRENA, Renewable 

Power Generation Costs in 2012…, op. cit. this note, pp. 19, 

59–60; and on range of about 3,900–8,000/kW from IEA, 

Tracking Clean Energy…, op. cit. this note. LCOE estimates in table 

all assume a 10% cost of capital and come from IRENA, 

Renewable Power Generation Costs in 2012…, op. cit. this note, p. 

65. Other LCOE estimates include: range of USD 0.12–0.16/kWh 

from GTM Research, Concentrating Solar Power 2011: Technology, 

Costs and Markets (Boston: 15 February 2011); range of USD 

0.19–0.29/kWh (assuming a 7% discount rate) from Edenhofer et 

al., op. cit. this note, p. 1004, assuming 7% discount rate; and 

EUR 0.15–0.20/kWh per ESTELA, The Essential Role for Solar 

Thermal Electricity (Brussels: October 2012), p. 3. 

Wind power: Characteristics based on the following: turbine sizes 

from JRC, 2011 Technology Map…, op. cit. this note; on- and 

offshore capacity factors from Edenhofer et al., op. cit. this note, 

p. 1005; and from IRENA, Renewable Power Generation Costs in 

2012…, op. cit. this note, p. 36. Note that weighted average 

162

capacity factors range from around 25% for China to an average 

33% in the United States (with a range of 18–53%); ranges in 

Africa and Latin America are similar to the United States, whereas 

ranges in Europe are closer to China. Curtailments in China due to 

grid constraints put the average capacity factor for dispatched 

generation closer to 20%, all from IRENA, Renewable Power 

Generation Costs in 2012…, op. cit. this note, p. 36. Capital costs 

for onshore wind based on: range of USD 1,750–2,200/kW in 

major OECD markets in 2011, and average U.S. costs in the first 

half of 2012 around USD 1,750/kW (and as low as USD 1,500/kW), 

from IRENA, Renewable Power Generation Costs in 2012…, op. cit. 

this note, pp. 18, 32–37; on Navigant’s BTM Consult, International 

Wind Energy Development: World Market Update 2012 

(Copenhagen: 2013); on a range of about USD 1,250–2,300/kW 

from IEA, Tracking Clean Energy…, op. cit. this note; and on R. 

Wiser and M. Bolinger, 2011 Wind Technologies Market Report 

(Washington, DC: U.S. Department of Energy, Office of Energy 

Efficiency and Renewable Energy, 2012). LCOE for onshore wind 

assume 7% discount rate and are from IRENA, Renewable Power 

Generation Costs in 2012…, op. cit. this note, p. 37; IRENA 

Renewable Cost Database, 2013, and from Michael Taylor, IRENA, 

personal communication with REN21, May 2013; also based on 

range of USD 0.04–0.16 U.S. cents/kWh from IEA, Deploying 

Renewables…, op. cit. this note. Note that the lowest-cost onshore 

wind projects have been installed in China; higher costs have been 

experienced in Europe and the United States. Offshore capital 

costs based on: average costs in the range of USD 4,000–4,500/ 

kW from IRENA, Renewable Power Generation Costs in 2012…, op. 

cit. this note, p. 18; on Navigant’s BTM Consult, op. cit. this note; 

and on range of USD 3,000–6,000/kW from IEA, Tracking Clean 

Energy…, op. cit. this note. Offshore LCOE based on USD 

0.15–0.17 assuming a 45% capacity factor, USD 0.035/kWh 

operations and maintenance cost, and 10% cost of capital, and on 

USD 0.14-0.15/kWh assuming a 50% capacity factor, from IRENA, 

Renewable Power Generation Costs in 2012…, op. cit. this note, p. 

38; also from the low LCOE for offshore wind in the OECD is about 

USD 0.15/kWh and the high is USD 0.23/kWh, assuming a 7% 

discount rate, per IRENA, Renewable Power Generation Costs in 

2012…, op. cit. this note, p. 37; IRENA Renewable Cost Database, 

2013, and from Michael Taylor, IRENA, personal communication 

with REN21, May 2013. All small-scale wind data from World Wind 

Energy Association (WWEA), 2012 Small Wind World Report 

(Bonn: March 2012). Note that in 2011, installed costs of the top 

10 small wind turbine models in the United States were in the 

range of USD 2,300–10,000/kW in 2011, and the average installed 

cost of all small-scale wind turbines was USD 6,040/kW; in China, 

the average was USD 1,900/kW, per WWEA, Small Wind World 

Report 2013 (Bonn: March 2013). 

HEAT AND COOLING SECTOR 

Biomass heat: Cost variations between heat plants are wide for 

reasons similar to those listed above for bio-power. Further details 

can be found at: Fachagentur Nachwachsende Rohstoff e.V. 

(FNR), “Faustzahlen Biogas,” www.biogasportal.info/daten-und-fakten/faustzahlen/, 

viewed May 2013; and Pellet Fuels 

Institute, “Compare Fuel Costs,” http://pelletheat.org/pellets/ 

compare-fuel-costs/, viewed May 2013. Bioenergy CHP includes 

small-scale biogas engine generating sets and biomass medium-scale 

steam turbines. Data converted using USD 1 GJ = 0.36 

U.S. cents/kWh. 

Geothermal heat: Geothermal space heating from Edenhofer et 

al., op. cit. this note, pp. 427 and 1010–11 (converted from USD 

2005 to 2012), assuming 7% discount rate, and using USD 1 GJ = 

0.36 U.S. cents/kWh. Also, for building heating, assumptions 

included a load factor of 25–30%, and a lifetime of 20 years; and 

for district heating, the same load factor, a lifetime of 25 years, 

and transmission and distribution costs are not included. For 

ground-source heat pumps (GHP), Edenhofer et al., shows capital 

costs of USD (2012) 1,095–4,370/kW, and USD 20–65/GJ 

assuming 25–30% as the load factor and 20 years as the 

operational lifetime. In 2011, IEA indicated a range of USD 

439–4,000/kW based on 2007 data and operating efficiency of 

250–500% (COP of 2.5–5.0), from IEA, Technology Roadmap 

Energy – Efficient Buildings: Heating and Cooling Equipment (Paris: 

OECD/IEA, 2011), Table 5. It is worth taking into account that 

actual LCOE for GHP are influenced by electricity market prices. 

Drilling costs are included for commercial and institutional 

installations, but not for residential installations. 

Solar thermal heating: Solar heating plant sizes and efficiency 

rates for hot water systems and combi systems, based on 2007 

data, from IEA, Technology Roadmap…, op. cit. this note, pp. 

12–13, and district heat plant sizes from Werner Weiss, AEE 

– Institute for Sustainable Technologies (AEE-INTEC), Gleisdorf, 

Austria, personal communication with REN21, April 2012. Capital 

costs for OECD new-build and for OECD retrofit (for year 2007) 

from IEA, Technology Roadmap…, op. cit. this note; LCOE for 

domestic hot water (low end), and capital costs and LCOE for 

China (all converted from USD 2005 to USD 2012; and LCOE 

assuming 7% discount rate, and converted using USD 1/GJ = 0.36 

U.S. cents/kWh) from Edenhofer et al., op. cit. this note, p. 1010; 

and LCOE for domestic hot water (high end) from Andreas 

Häberle, PSE AG, Freiburg, personal communication with REN21, 

29 May 2013. European district heat capital costs from Weiss, op. 

cit. this note, and from Häberle, 25 April 2013. Note that the low of 

USD 470/kW is for district heat systems in Denmark, where costs 

start at about USD 370/kW (EUR 200/m 2 ) and storage costs a 

minimum of USD 100/kW. LCOE for district heat in Denmark based 

on low of EUR 0.03/kWh (converted using EUR 1 = USD 1.3), from 

Häberle, op. cit. this note. According to the IEA, the most 

cost-effective solar district heating systems in Denmark have had 

investment costs in the USD 350–400/kW range, resulting in heat 

prices of USD 35–40/MWh, from IEA, Technology Roadmap 

– Solar Heating and Cooling (Paris: OECD/IEA, 2012), p. 21. 

Industrial process heat data all from Häberle, 25 April 2013. 

Solar thermal cooling: Capacity data, efficiency, and capital cost 

in the range of USD 2,925–5,850/kW from Uli Jakob, “Status and 

Perspective of Solar Cooling Outside Australia,” in Proceedings of 

the Australian Solar Cooling 2013 Conference, Sydney, 12 April 

2013. Efficiency based on coefficient of performance (COP) 

ranging from 0.50 to 0.70, depending on the system used and on 

driving, heat rejection, and cold water temperatures. Capital cost 

ranges based on EUR 2,250/kW for large-scale kits to EUR 4,500/ 

kW for small-scale kits. Low-end of capital costs based on range of 

USD 1,600–3,200/kW for medium- to large-scale systems from 

IEA, Technology Roadmap – Solar Heating and Cooling, op. cit. this 

note, p. 21. 

TRANSPORT SECTOR 

Biofuel costs vary widely due to fluctuating feedstock prices (see, 

for example, Agriculture Marketing Resource Center (AgMRC), 

“Tracking Ethanol Profitability,” www.agmrc.org/renewable_ 

energy/ethanol/tracking_ethanol_profitability.cfm). Costs quoted 

exclude value of any co-products. Data sources include: 

Ernst and Young, Renewable Energy Attractiveness Indices 

(London: November 2012); IRENA analysis (forthcoming 2013); 

JRC, 2011 Technology Roadmap ..., op. cit. this note. 

RURAL ENERGY 

Wind capital cost data based on what is representative for Africa, 

from B. Klimbie, “Small and Medium Wind for Off-Grid 

Electrification,” presentation at International Off-Grid Renewable 

Energy Conference and Exhibition (IOREC), 2 November 2012, 

cited in IRENA, Renewable Power Generation Costs in 2012…, op. 

cit. this note, p. 34; LCOE from Alliance for Rural Electrification, 

cited in Simon Rolland, “Campaigning for Small Wind: Facilitating 

Off-Grid Uptake,” Renewable Energy World, March–April 2013, pp. 

47–49. All other data from past editions of REN21, Renewables 

Global Status Report (Paris: REN21 Secretariat, various years). 

02 


ENDNOTES 03 INVESTMENT FLOWS 

Investment Flows 

1 Sidebar 5 from the following sources: Frankfurt School – UNEP 

Collaborating Centre for Climate & Sustainable Energy Finance 

(FS-UNEP) and Bloomberg New Energy Finance (BNEF), Global 

Trends in Renewable Energy Investment 2013 (Frankfurt: 2013); C. 

Mitchell et al., “Policy, Implementation and Financing,” Chapter 

11 in O. Edenhofer et al., eds., IPCC Special Report on Renewable 

Energy Sources and Climate Change Mitigation (Cambridge, U.K. 

and New York: Cambridge University Press, 2012); International 

Energy Agency (IEA), Harnessing Variable Renewables – A Guide to 

the Balancing Challenge (Paris: 2011), pp. 877–78. Figure 21 from 

FS-UNEP and BNEF, op. cit. this note. 

2 Figure 22 from FS-UNEP and BNEF, op. cit. note 1. 

3 Figure 23 from ibid. 

4 Figure of 80% for 2011 from FS-UNEP and BNEF, Global Trends in 

Renewable Energy Investment 2012 (Frankfurt: 2012). 

5 Ibid. 

6 Estimates of 55.4 GW th 

and 80% based on data from Franz 

Mauthner, AEE – Institute for Sustainable Technologies, Gleisdorf, 

Austria, personal communication with REN21, 14 May 2013, and 

from Werner Weiss and Franz Mauthner, Solar Heat Worldwide: 

Markets and Contribution to the Energy Supply 2011, edition 2013 

(Gleisdorf, Austria: IEA Solar Heating and Cooling Programme, 

May 2013). Weiss and Mauthner estimate of 52.6 GW th 

was 

derived from available market data from Austria, Brazil, China, 

Germany, and India; data for the remaining countries were 

estimated according to their trends for the previous two years. The 

Weiss and Mauthner report covers 56 countries and is assumed 

to represent 95% of the global market, so data were adjusted 

upwards by REN21 from an estimated 95% of the global market to 

100% (i.e., 52.6 GW th 

/0.95) to reach 55.4 GW th 

of gross additions. 

Note that the scale of investment in solar heat systems worldwide 

is difficult to estimate because the price of devices varies widely 

from one country or region to the next. In addition, the BNEF 

estimate includes only the actual devices or panels; it does not 

include installation costs. 

7 BNEF estimate for investment in large hydropower (>50 MW) is 

based on 22 GW of capacity commissioned during 2012 and a 

capital cost per megawatt of USD 1.5 million, bringing the total 

investment in large hydropower to USD 33 billion. The figure 

USD 1.5 billion per GW is the average value based on numbers 

provided by developers of large hydro projects in applications 

for the Clean Development Mechanism. Estimates are approximate 

only, due greatly to the fact that timing of the investment 

decision on a project may be about four years on aver age away 

from the moment of commissioning. As a result, a large share of 

the investment total for the projects commis sioned in 2012 was 

actually invested in prior years; in addition, there was investment 

during 2012 for projects that are currently under construction 

and are not included in the BNEF estimates. Note that data for 

hydropower projects larger than 50 MW differ somewhat between 

this GSR and the Global Trends in Renewable Energy Investment 

2013 due to different methodologies and data sources. This GSR 

estimates that 30 GW of total hydropower capacity was commissioned 

worldwide during 2012, and a significant portion of this was 

projects larger than 50 MW, whereas BNEF estimates that 26 GW 

of hydro capacity was commissioned in 2012, including 22 GW of 

large projects (>50 MW). 

8 Data are from the IEA and were aggregated by BNEF. For 

corporate R&D, data are from BNEF database and the Bloomberg 

Terminal; for government R&D, data are from BNEF database and 

the IEA database. Further sources are the International Monetary 

Fund and various government agencies. 

164

Policy Landscape 

1 This section is intended to be only indicative of the overall landscape 

of policy activity and is not a definitive reference. Policies 

listed are generally those that have been enacted by legislative 

bodies. Some of the policies listed may not yet be implemented, 

or are awaiting detailed implementing regulations. It is obviously 

difficult to capture every policy, so some policies may be 

unintentionally omitted or incorrectly listed. Some policies also 

may be discontinued or very recently enacted. This report does 

not cover policies and activities related to technology transfer, 

capacity building, carbon finance, and Clean Development 

Mechanism projects, nor does it highlight broader framework and 

strategic policies—all of which are still important to renewable 

energy progress. For the most part, this report also does not cover 

policies that are still under discussion or formulation, except to 

highlight overall trends. Information on policies comes from a 

wide variety of sources, including the International Energy Agency 

(IEA) and International Renewable Energy Agency (IRENA) 

Global Renewable Energy Policies and Measures Database, the 

U.S. Database of State Incentives for Renewables & Efficiency 

(DSIRE), RenewableEnergyWorld.com, press reports, submissions 

from regional- and country-specific contributors to this report, 

and a wide range of unpublished data. Much of the information 

presented here and further details on specific countries appear on 

the “Renewables Interactive Map” at www.ren21.net. It is unrealistic 

to be able to provide detailed references to all sources here. 

Table 3 based on idem and numerous sources cited throughout 

this section. Figures 25 and 26 from idem and from Renewable 

Energy Policy Network for the 21st Century (REN21), Renewables 

2005 Global Status Report (Washington, DC: Worldwatch Institute, 

2005), and from REN21, Renewables Global Status Report 

2006 Update (Paris: REN21 Secretariat and Washington, DC: 

Worldwatch Institute, 2006). 

2 Sidebar 6 is based on the following sources: IEA estimate from 

IEA, World Energy Outlook 2012 (Paris: 2012), p. 69. Of this total, 

about 54% went to oil products and 25% to the underpricing of 

fossil-based electricity (p. 70); IMF estimate from International 

Monetary Fund (IMF), Energy Subsidy Reform: Lessons and 

Implications (Washington, DC: January 2013); Birol statement 

made at European Wind Energy Association 2013 Annual Event, 

Vienna, Austria, 4 February 2013, as quoted in Zoë Casey, “Fossil 

Fuel Subsidies Are ‘Public Enemy Number One’,” European 

Wind Energy Association, 4 February 2012, at www.ewea.org/ 

blog/2013/02/fossil-fuel-subsidies-are-public-enemy-number-one/; 

estimate of USD 88 billion and sectoral/country 

breakdowns from IEA, World Energy Outlook 2012, op. cit. this 

note, pp. 234–35. Heating and cooling subsidies include, for 

example the U.K. Renewable Heat Incentive, see https://www.gov. 

uk/government/policies/increasing-the-use-of-low-carbon-technologies/supporting-pages/renewable-heat-incentive-rhi; 

cost 

and benefits from IEA, “How Big Are Energy Subsidies and Which 

Fuels Benefit?” World Economic Outlook 2011 Factsheet (Paris: 

2011), and from Chapter 9 in O. Edenhofer et al., eds. IPCC Special 

Report on Renewable Energy Resources and Climate Change 

Mitigation, prepared by Working Group III of the Intergovernmental 

Panel on Climate Change (Cambridge, U.K. and New York: 

Cambridge University Press, 2011); reduced export earnings 

from IEA, World Energy Outlook 2012, op. cit. this note, p. 69; G20 

from G20, “Leaders Statement: The Pittsburgh Summit, 24–25 

September 2009,” paragraph 24 of Preamble; APEC commitments 

from IEA, World Energy Outlook 2012, op. cit. this note, p. 71; 

G20 finance meeting from International Institute for Sustainable 

Development (IISD), “G20 Finance Ministers Call for Phase-out of 

Inefficient Fossil Fuel Subsidies,” 16 February 2013, at http://climate-l.iisd.org/news/g20-finance-ministers-call-for-phase-out-ofinefficient-fossil-fuel-subsidies/. 

In the communiqué, G20 Finance 

Ministers agreed to develop methodological recommendations 

and to undertake a voluntary peer review process for fossil fuel 

subsidies in order to promote broad participation and report on 

the outcomes to G20 leaders at the September 2013 G20 Summit 

in St. Petersburg, Russia. The language was not changed from the 

previous communiqué in 2009; two joint reports from IEA, “Input 

to the G20 Initiative on Rationalizing and Phasing Out Inefficient 

Fossil Fuel Subsidies,” www.iea.org/publications/worldenergyoutlook/resources/energysubsidies/inputtog20initiative/; 

IMF 

report from IMF, op. cit. this note; lack of timeline and organisation 

from Natural Resources Defense Council, “Governments Should 

Phase Out Fossil Fuel Subsidies or Risk Lower Economic Growth, 

Delayed Investment in Clean Energy and Unnecessary Climate 

Change Pollution,” Fuel Facts, 2012, at www.nrdc.org/energy/ 

files/fossilfuel4.pdf; subsidy reform in non-OECD countries from 

IEA, World Energy Outlook 2012, op. cit. this note, pp. 71–72; 

an increasing number of civil society observers and research 

organisations are monitoring and reporting on the global fossil fuel 

subsidies burden, a reflection of its rising public profile. One such 

effort is led by IISD’s Global Subsidies Initiative (GSI), designed 

to put the spotlight on subsidies and the corrosive effects they 

can have on environmental quality, economic development, and 

governance; see www.iisd.org/gsi/. 

3 India from Global Wind Energy Council (GWEC), India Wind Energy 

Outlook 2012 (Brussels: November 2012), and from M. Ramesh, 

“Wind power capacity addition down 40% in first-half,” The 

Hindu Business Line, 13 October 2012; Tonga from Z. Shahan, 

“Kingdom of Tonga Plans for 50% Renewable Energy by 2015,” 

CleanTechnica.com, 23 February 2012. 

4 Philippe Lempp, Deutsche Gesellschaft für Internationale 

Zusammenarbeit (GIZ), personal communication with REN21, 25 


5 To meet the overall target, India has also outlined technology-specific 

electricity targets for wind (15 GW additional), solar (10 GW), 

biomass and biofuels (2.7 GW), and small-scale hydro (2.1 GW), 

per Bloomberg New Energy Finance (BNEF), “Energy: Week in 

Review Vol. VI – Issue 136” (London: 29 May 2012). 

6 The Palestinian Territories set installed capacity targets for wind 

(44 MW), solar PV (45 MW), CSP (20 MW), and waste to energy 

(21 MW) by 2020. Hatem Elrefaai, Regional Centre for Renewable 

Energy and Energy Efficiency (RCREEE), personal communication 

with REN21, 23 March 2013. 

7 In addition to the targets for on-grid renewable electricity, the 

ECOWAS Regional Energy Policy aims to serve 25% of the rural 

population via off-grid systems (e.g., stand-alone systems, 

mini-grids). It further includes a regional biofuel blending target of 

15% of gasoline consumption by 2030, and stipulates that 50% of 

health centres and schools, 25% of agro-food industries, and 25% 

of hotels shall be equipped with solar thermal systems by 2030, 

per ECOWAS, ECOWAS Renewable Energy Policy (Cape Verde: 

2012). 

8 Qatar from Abdulaziz Al-Shalabi, OME, France, personal communication 

with REN21, 20 May 2013; Iraq from Amel Bida, RCREEE, 

personal communication, 19 February 2013. Saudi Arabia’s 54.1 

GW renewable energy target is designed to be met by capacity 

additions from a range of technologies. The target calls for 16 

GW of solar PV, 25 GW of solar thermal, and a combined 13 GW of 

wind, geothermal, and waste-to-energy by 2032. King Abdullah 

City for Atomic and Renewable Energy, Proposed Competitive 

Procurement Process for the Renewable Energy Program 

(Saudi Arabia: 2013); “Saudi Arabia Reveals Plans for 54 GW of 

Renewable Energy, White Paper Provides Details,” CleanTechnica. 

com, 25 February 2013; B. Stuart, “Saudi Arabia targets 41 GW 

of solar by 2032,” PV Magazine, 9 May 2012; G. Clercq, “Saudi 

Arabia hopes to export solar electricity to Europe,” Reuters, 11 


9 “Energy Community Ministerial Council Adopts Renewable Energy 

2020 targets,” www.energy-community.org, 18 October 2012. 

Note that Sweden, Austria, Denmark, Spain, Greece, Hungary, 

and the Czech Republic have set national targets in addition to 

those set under EU Directive 2009/28/EC. The Directive sets 

targets at 49% in Sweden, 34% in Austria, 30% in Denmark, 20% 

in Spain, 18% in Greece, and 13% in Hungary and the Czech 

Republic. Figure 24 from the following sources: targets for 2020 

and share in 2005 from European Commission, “Renewable 

Energy Targets by 2020,” http://ec.europa.eu/energy/renewables/ 

targets_en.htm; share in 2011, except where otherwise noted, 

from Observ’ER, The State of Renewable Energies in Europe 2012 

(Paris: 2012); Germany 2011 share from Bundesministerium für 

Umwelt, Naturschutz und Reaktorsicherheit (BMU), “Erneuerbare 

Energien 2012” (Bonn: February 2013); Portugal 2011 share 

from Luisa Silverio, Direcção Geral de Energia e Geologia (DGEG), 

personal communication, 14 December 2012. 

10 Ibid. Maged Mahmoud, RCREE, personal communication with 

REN21, 20 February 2013. 

11 Austria from Ministry of Economy, Family, and Youth, 

“Mitterlehner: Neues Ökostromgesetz stärkt Österreichs Position 

als Europameister bei Erneuerbaren Energien,” press release 

(Vienna: 29 June 2012); Denmark from Danish Energy Agency, 

“Danish Climate and Energy Policy,” www.ens.dk/en-US/policy/ 

danish-climate-and-energy-policy/Sider/danish-climate-and-energy-policy.aspx; 

France from T. Patel, “France Doubles Solar 

Energy Target, Seeks to Promote European Equipment,” 

04 


ENDNOTES 04 POLICY LANDSCAPE 

RenewableEnergyWorld.com, 8 January 2013; Germany from DB 

Climate Change Advisors, The German Feed-in Tariff: Recent Policy 

Changes (New York: Deutsche Bank Group, 2012); Netherlands 

from Government of the Netherlands, “III. Sustainable growth and 

innovation,” www.government.nl/government/coalition-agreement/sustainable-growth-and-innovation; 

Poland from Steve 

Sawyer, GWEC, personal communication with REN21, 18 

September 2012; Russian Federation from Government of the 

Russian Federation, “Order No 1839-r,” 4 October 2012; Scotland 

from V. Font, “Scotland Schools the States on Offshore Wind 

Initiatives,” RenewableEnergyWorld.com, 22 November 2012. 

12 To meet the overall target of 9.5% of total energy consumption, 

technology-specific targets have been outlined. These include: 

hydropower: 290 MW, including 30 MW pumped storage; 

grid-connected wind: 100 GW, including 5 GW offshore; solar 

power: 21 GW; solar thermal: 400 million m 2 ; biomass: 50 Mtce 

per year; geothermal: 15 Mtce; and ocean energy: 50,000KW, per 

IEA/IRENA, Joint Policies and Measures database, “The Twelfth 

Five-Year Plan for Renewable Energy,” updated 14 February 2013; 

“China’s Energy Policy 2012,” China Daily, 25 October 2012, at 

www.chinadaily.com.cn/cndy/2012-10/25/content_15844539. 

htm. 

13 India from B. Epp, “India: Solar Mission Phase II Targets 8 Million 

m2,” SolarThermalWorld.org, 4 January 2012, and from Ministry 

of New and Renewable Energy, Jawaharlal Nehru National Solar 

Mission Phase II-Policy Document (Delhi: December 2012); Japan 

from “Ocean Power Technologies awarded contract to research 

Japanese applications,” HydroWorld.com, 23 October 2012. 

14 MERCOM Capital Group, Market Intelligence Report – Solar, 11 


15 Egypt from IEA/IRENA Joint Policies and Measures database, 

“Egyptian Solar Plan” updated 20 September 2012; Jordan 

from B. Gonzalez, “Weekly Intelligence Brief: Feb 25-March 4,” 

CSPToday.com, 4 March 2013; Libya from Maged Mahmoud, 

RCREE, personal communication with REN21, 19 February 2013. 

16 Djibouti from European Union, “EU announces major support 

to pioneering renewable energy in Djibouti,” press release 

(Brussels: 19 December 2012), and from IRENA, “Renewable 

Energy Country Profile Djibouti” (Abu Dhabi: 2011); Lesotho 

from Government of Lesotho, Lesotho Renewable Energy Policy 

(LesREP), 2013. 

17 J. Runyon, “Strategic Investing in the Solar Industry: Who Is 

Buying Whom and Why?” RenewableEnergyWorld.com, 5 

December 2012; “Chinese government takes control to safeguard 

the future of its solar PV manufacturers,” RenewableEnergyFocus. 

com, 6 August 2012; BNEF, “Energy: Week in Review Vol. VI – 

Issue 166” (London: 15 January 2013). 

18 E. Yep. “Indonesia Seeks Big Jump in Output of Renewable 

Energy,” Wall Street Journal, 23 October 2012. 

19 Japan from J. Kyodo, “Renewable energy plan sees no nukes,” 

Japan Times, 1 September 2012; Thailand from Department of 

Alternative Energy Development and Efficiency, The Renewable 

and Alternative Energy Development Plan for 25 Percent in 10 Years 

(AEDP 2012-2021), at www.dede.go.th/dede/images/stories/ 

dede_aedp_2012_2021.pdf. 

20 Mexico from personal communication with REN21, 19 April 2013; 

Uruguay from BNEF, “Energy: Week in Review Vol. VI – Issue 139” 

(London: 26 June 2012). 

21 Paul Gipe, “Ontario FIT Review Released; Bold Program to 

Continue,” wind-works.org, 26 March 2013. 

22 Nigeria from Eder Semedo, ECOWAS Centre for Renewable Energy 

and Energy Efficiency (ECREEE), personal communication with 

REN21, 15 January 2013; Portugal from Luisa Silverio, Directorate 

General for Energy and Geology, personal communication with 

REN21, 14 December 2012. 

23 Y. Glemarec, W. Rickerson, and O. Waissbein, Transforming 

On-grid Renewable Energy Markets (New York: United Nations, 

2012). 

24 REN21, Renewables 2012 Global Status Report (Paris: 2012); D. 

Markey, A. Gump, and P. Byrne, “Emerging Markets Take Over 

Renewable Energy Landscape,” RenewableEnergyWorld.com, 

28 December 2012; Nigeria from Heinrich Böll Stiftung, Powering 

Africa Through Feed-in Tariffs (Addis Ababa: 2013), p. 101. 

25 Paul Gipe, “Jordan Adopts Renewable Energy Feed-in Tariffs— 

and Shelves Nuclear,” wind-works.org, 11 December 2012. 

26 The Philippines FIT covers rates for run-of-river hydropower, 

ocean, biomass, wind, and solar power, per Paul Gipe, 

“Philippines Finally Approves Feed-in Tariff Program,” wind-works. 

org, 27 July 2012. 

27 Y. Inoue and L. Walet, “Japan Approves Renewable Subsidies in 

Shift from Nuclear Power,” Reuters, 19 June 2012. 

28 France from Oliver Ristau, “France boosts FITs for rooftop 

PV ‘Made in Europe’,” pv-magazine.com, 9 October 2012; 

Indonesia from U.S. Library of Congress, “Indonesia: New Pricing 

Regulations for Biomass Power Plants,” 16 July 2012. at www. 

loc.gov/lawweb/servlet/lloc_news?disp3_l205403243_text, and 

from Paul Gipe, “Indonesia Launches ‘Crash’ Renewable Program: 

Boosts Geothermal FITs,” RenewableEnergyWorld.com, 20 July 

2012; Ireland from Ireland Department of Communications, 

Energy and Natural Resources, “REFIT,” www.dcenr.gov.ie/ 

Energy/Sustainable+and+Renewable+Energy+Division/REFIT. 

htm. 

29 Austria from “Austria adopts new feed-in tariffs,” renewablesinternational.net, 

21 September 2012, and from N. Choudhury, 

“Austria doubles renewable budget but cuts FiT for plants 

>500kW,” pv-tech.org, 21 September 2012; Bulgaria from A. 

Krasimirov, “Green energy firms to take Bulgaria to court over 

new fees, Reuters, 20 September 2012, from T. Tsolova, “Bulgaria 

plans further cuts in solar incentives,” Reuters, 27 July 2012, and 

from “Bulgaria retroactively cuts PV feed-in tariff rates up to 39%,” 

solarserver.com, 19 September 2012; Greece from “Greece to 

Retroactively Cut FITs,” PV News, March 2013; Germany from 

BNEF, “Energy: Week in Review Vol. VI – Issue 142” (London: 

17 July 2012), and from German Federal Environment Ministry 

(BMU), “Photovoltaics: Agreement in the Conciliation Committee,” 

press release (Berlin: 28 June 2012); GWEC, Global Wind Report 

Annual Market Update 2012 (Brussels: 2012). 

30 Italy from Paul Gipe, “Italian Small Wind Growing with Feed-in 

Tariffs,” RenewableEnergyWorld.com, 27 November 2012. 

31 Dominique Nauroy, “Energies renouvelables: les tariffs bientôt 

chamboulés au Luxembourg,” 31 July 2012, at www.wort.lu/fr/ 

view/energies-renouvables-les-tarifs-bientot-chamboules-au-luxembourg-5017ec6fe4b0c324c537ebdf; 

PWC 2012, “Is 

Luxembourg the right place to invest in photovoltaic production?” 

Real Estate Sustainability Newsletter, June 2012, at www.pwc.lu/ 

en/sustainability/newsletter-june2012/news-2.html. 

32 M. Savic, “Serbia Lifts Hydro Power Incentives, Cut Wind, Solar 

Fees,” Bloomberg.com, 11 December 2012. 

33 ResLegal, Edoardo Binda Zane, Agencia Estatal Boletin Oficial del 

Estado, “Real Decreto-ley 1/2012,” 14 December 2012; V. Pekic, 

“Spain publishes retroactive PV FIT cuts,” pv-magazine.com, 

21 February 2013; “Spain’s Government ‘devastates’ the CSP 

sector,” CSPToday.com, 4 February 2013. 

34 United Kingdom from F. Harvey, “UK cuts feed-in tariff for solar 

panels,” The Guardian (U.K.), 1 August 2012, and from Paul 

Gipe, “Britain Powered by FITs Surpasses U.S. in 2011 Small 

Wind Capacity,” wind-works.org, 26 July 2012; Ukraine from N. 

Choudhury, “Ukraine passes renewable energy law cutting solar 

FiT,” pv-tech.org, 4 December 2012. 

35 Despite the removal of the existing FIT in Mauritius, a new 

FIT for projects over 50 kW is currently in development. Paul 

Gipe, “Mauritius Closes Expanded Feed-in Tariff Program After 

Reaching Target,” wind-works.org, 28 August 2012; Wilson 

Rickerson, Meister Consulting, personal communication with 

REN21, 1 March 2013; Uganda from N. Wesonga, “Govt to 

increase feed-in tariffs,” Daily Monitor, 6 January 2013, at www. 

monitor.co.ug; I. Tsagas, “Uganda drops PV FIT program,” 

pv-magazine.com, 27 March 2013. 

36 Paul Gipe, “Vermont Raises Solar and Small Wind Tariffs,” 

RenewableEnergyWorld.com, 10 April 2012. 

37 Ontario Power Authority, “Feed-in Tariff Program FIT Rules Version 

2.0,” 10 August 2012, at http://fit.powerauthority.on.ca/sites/ 

default/files/FIT%20Rules%20Version%202.0.pdf. 

38 World Trade Organization, “Dispute Settlement: Dispute DS412, 

Canada-Certain Measures Affecting the Renewable Energy 

Generation Sector,” 19 December 2012. at www.wto.org/english/ 

tratop_e/dispu_e/cases_e/ds412_e.htm. 

39 Ernst and Young, Renewable Energy Country Attractiveness 

Indices, Issue 33 (May 2012). 

40 Poland from M. Roca, “Poland Renewables Bill to Forge New 

Solar Market as EU Cuts Back,” RenewableEnergyWorld.com, 

30 October 2012; Saudi Arabia from Paul Gipe, “Saudi Arabia 

166

Launches Massive Renewable Program with Hybrid FITs,” 

RenewableEnergyWorld.com, 15 May 2012. 

41 China from C. Zhu, “China pushes wind power, but no quick payoff 

for producers,” Reuters, 10 September 2012; REN21, op. cit. note 

24. 

42 Poland from M. Strzelecki, “Poland to Boost Renewable Power 

Use Targets as Output Beats Plan,” RenewableEnergyWorld. 

com, 22 October 2012; Italy from Paul Gipe, “Italy Abandons RPS, 

Adopts System of Feed-in Tariffs,” RenewableEnergyWorld.com, 6 


43 REN21, Renewables 2011 Global Status Report (Paris: 2011); U.S. 

Energy Information Administration (EIA), “Country Analysis Brief: 

South Korea,” 17 January 2013, at www.eia.gov/countries/cab. 

cfm?fips=KS. 

44 Delaware and New Hampshire from “10 Significant State 

Policies for Distributed Solar Energy,” SustainableBusiness. 

com, 5 October 2012; Maryland from DSIRE USA Database, 

“Maryland: Renewable Portfolio Standard,” 23 May 2012, at 

www.dsireusa.org, and from D. Dougherty, “Geothermal Heat 

Pumps Are Renewable and Our Most Efficient HVAC Technology,” 

RenewableEnergyWorld.com, 1 October 2012; New Jersey 

from DSIRE USA Database, “New Jersey: Renewable Portfolio 

Standard,” 30 July 2012, at www.dsireusa.org. 

45 DSIRE USA Database, “Ohio: Alternative Energy Portfolio 

Standard,” 8 November 2012, at www.dsireusa.org. 

46 REN21, op. cit. note 24. 

47 Australia from Australian Government Department of Climate 

Change and Energy Efficiency, “Solar Credits: Frequently asked 

questions (FAQs),” at www.climatechange.gov.au/government/ 

initiatives/renewable-target/need-ret/solar-credits-faq.aspx; 

Romania from F. Vasilica and A. Stanciu, “Renewable Energy 

Review: Romania,” RenewableEnergyWorld.com, 31 December 

2012. 

48 Andhra Pradesh from Government of Andhra Pradesh, Andhra 

Pradesh Solar Power Policy-2012, http://bridgetoindia.com/ 

archive/policy/Andhra-Pradesh-Solar-Policy-2012-Abstract. 

pdf; Arizona from D. Metcalf, “Arizona Legislature Exempts 

the Sale of Renewable Energy Credits from States Sales Tax,” 

RenewableEnergyWorld.com, 8 May 2012. Belgium from the 

following sources: Green Sun, “Certificats Verts à Bruxelles – de 

5 a 4 CV/MWh,” 2012, at www.greensun.be/fr/news/2012/ 

certificats-verts-bruxelles.aspx; RES Legal – Legal Sources on 

Renewable Energy, “Arrêté minsteriel du 12 juillet 2012,” at www. 

res-legal.eu/search-by-country/belgium/sources/t/source/src/ 

arrete-ministeriel-du-12-juillet-2012/; RES Legal – Legal Sources 

on Renewable Energy, “Wallonia: Quota System (certificats 

vert),” 18 December 2012, available at www.res-legal.eu/ 

search-by-country/belgium/single/s/res-e/t/promotion/aid/wallonia-quota-system-certificats-verts/lastp/107/; 

Nilima Choudhury, 

“Flanders introduces further cuts to solar subsidies,” pv-tech. 

org, 31 May 2012; Febeliec, “System of certificates for green 

electricity and cogeneration in Flanders,”18 September 2012, 

at www.febeliec.be/data/1352385539GSC%20Vlaanderen_ 

ENG_20120918.pdf. 

49 IRENA, Assessment of Renewable Energy Tariff-Based 

Mechanisms, Policy Brief (Abu Dhabi: 2013). 

50 Based on numerous sources cited throughout this section; see 

also Endnote 1 and Table 3. 

51 IRENA, op. cit. note 49. 

52 Roberto Román L., University of Chile, personal communication 

with REN21, 21 April 2013. 

53 Ernst and Young, op. cit. note 39; “France gives go ahead to 541 

MW of solar power projects,” RenewableEnergyFocus.com, 31 

July 2012. 

54 Ernst and Young, Renewable Energy Country Attractiveness 

Indices; Issue 34, August 2012. 

55 BNEF, “Energy: Week in Review Vol. VI – Issue 134” (London: 16 

May 2012). 

56 Bridge to India, India Solar Compass, April 2013. 

57 Brazil from R. Figueiredo et al., “Brazil’s Attempt at Distributed 

Generation: Will Net Metering Work?” RenewableEnergyWorld. 

com, 13 July 2012; Chile from P. McCully, “Can Renewable 

Energy Save Patagonia’s Rivers?” 9 August 2012, at www. 

internationalrivers.org; Egypt from RCREEE, “Egypt: Net Metering 

Systems,” 18 February 2013, at www.rcreee.org/news-media/ 

news/2013/02/18/egypt-net-metering-systems/. 

58 California from “10 Significant State Policies for Distributed Solar 

Energy,” op. cit. note 44; Massachusetts from “Massachusetts 

double net metering allowance clearing the way for more solar 

power,” RenewableEnergyFocus.com, 7 August 2012. 

59 RES Legal – Legal Sources on Renewable Energy, “Denmark: 

Net Metering,” www.res-legal.eu/search-by-country/denmark/ 

single/s/res-e/t/promotion/aid/net-metering/lastp/96, updated 4 


60 Cameroon from U.S. Department of State, “2012 Investment 

Climate Statement, Cameroon,” www.state.gov/e/eb/rls/othr/ 

ics/2012/191122.htm, viewed June 2012; India from Ernst 

and Young, op. cit. note 39; Ireland from RES Legal – Legal 

Sources on Renewable Energy, “Tax regulation mechanisms 

(Taxes Consolidation Act 1997),” www.res-legal.eu/searchby-country/ireland/single/s/res-e/t/promotion/aid/tax-regulation-mechanisms-taxes-consolidation-act-1997/lastp/147, 

updated 12 December 2012; Libya from Lily Riahi, REN21, 

personal communication, 24 February 2013; Madagascar 

from REVE, “Madagascar aims for major investment in wind 

energy,” 24 February 2012, at www.evwind.es/2012/02/24/ 

madagascar-aims-for-major-investment-in-wind-energy/16820. 

61 “Wind Energy Tax Credit Extension Passes with Fiscal Cliff Deal,” 

RenewableEnergyWorld.com, 2 January 2013. 

62 Meg Cichon, “2013 Geothermal: Last-Minute PTC Revision Sparks 

a New Hope,” RenewableEnergyWorld.com, 3 January 2013. 

63 DSIRE USA Database, “Modified Accelerated Cost-Recovery 

System (MACRS) + Bonus Depreciation (2008-2013),” 3 January 

2013, at www.dsireusa.org; S. Sklar, “PTC Extension: Another 

Squeaker for Clean Energy,” RenewableEnergyWorld.com, 3 


64 RES Legal – Legal Sources on Renewable Energy, “Belgium: 

National: Tax regulation mechanism (income tax reduction),” 

www.res-legal.eu/search-by-country/belgium/single/s/res-hc/t/ 

promotion/aid/national-tax-regulation-mechanism-income-tax-reduction/lastp/107/, 

updated 27 February 2013. 

65 “Asia Report: India Slashes Wind Incentive,” 

RenewableEnergyWorld.com, 2 April 2012; “Asia Report: 

India Scales Back Subsidies, What It Means for Solar,” 

RenewableEnergyWorld.com, 5 February 2013; E. Prideaux, 

“India ‘must return’ to generation-based incentive,” windpowermonthly.com, 

27 November 2012; T. Bayar, “Relief for India’s 

Wind Industry as GBI Returns,” RenewableEnergyWorld.com, 20 

March 2013; “India’s Budget Includes $145 Million Incentive for 

Wind Energy, Low-cost Funding For Renewable Energy Projects,” 

CleanTechnica.com, 1 March 2013. 

66 “Asia Report: India Slashes Wind Incentive,” op. cit. note 65; “Asia 

Report: India Scales Back Subsidies, What It Means for Solar,” op. 

cit. note 65; Prideaux, op. cit. note 65. 

67 Bulgaria from BNEF, “Energy: Week in Review, Vol. VI – Issue 152” 

(London: 25 September 2012); Greece from P. Tugwell, “Greece 

Backs Second Renewable-Power Tax Increase in Five Months,” 

RenewableEnergyWorld.com, 14 January 2013; Spain from 

BNEF, “Energy: Week in Review, Vol. VI – Issue 151” (London: 18 


68 U.S. Department of Commerce, “Fact Sheet: Commerce Finds 

Dumping and Subsidization of Crystalline Silicon Photovoltaic 

Cells, Whether or Not Assembled into Modules from the People’s 

Republic of China,” 10 October 2012, at http://ia.ita.doc.gov/ 

download/factsheets/factsheet_prc-solar-cells-ad-cvd-finals-20121010.pdf; 

B. Wingfield, “U.S. Boosts Duties on China 

Wind Energy as Trade Talks Open,” RenewableEnergyWorld.com, 

19 December 2012. 

69 J. Gifford, “Australia: funding released for PV research,” pv-magazine.com, 

23 November 2012. 

70 Azerbaijan from MERCOM Capital Group, Market Intelligence 

Report – Solar, 4 February 2013; Cyprus from Cyprus Institute of 

Energy, Grant Scheme for the Promotion of Electricity Generation 

Using Wind, Solar, Thermal, Photovoltaic Systems and the 

Utilization of Biomass, 9 May 2012, at www.cie.org.cy/menuEn/ 

pdf/grand-schemes/ELECTRICITY_GENERATION_SCHEME- 

FINAL.pdf; China from O. Wagg, “Asia Report: China Solar Shares 

Soar as Government Bails Out Sector,” RenewableEnergyWorld. 

com, 18 December 2012; Iran from T. Milad, “Iran annually 

generates 300 million kWh of renewable energy,” power-eng. 

com, 14 June 2012; Iraq from “Iraq plans to invest up to $1.6 bln 

in solar and wind energy,” Reuters, 15 October 2012; Scotland 

from A. Perks, “Proposed Investment May Help Wave and Tidal 

Technologies Thrive,” RenewableEnergyWorld.com, 1 November 

2012; South Korea from A. Barber, “Offshore Wind Prospects: Asia 

04 



Eyes Opportunity,” RenewableEnergyWorld.com, 28 September 

2012; United Kingdom from The Daily Energy Report, “U.K. Green 

Investment Bank to Allocate $4.8 to Green Energy by 2015,” 

dailyenergyreport.com, 20 January 2013. 

71 “China Dims ‘Golden Sun’ Solar Subsidy,” 

RenewableEnergyWorld.com, 3 May 2012; F. Haugwitz, “China’s 

Solar Dragon Year 2012,” RenewableEnergyWorld.com, 13 


72 Czech Republic from Ernst and Young, op. cit. note 54; Estonia 

from O. Ummelas, “Estonia to Retract Pledge on Wind Energy 

Subsidy Cap, Part Says.” RenewableEnergyWorld.com, 10 

January 2013; Spain from BNEF, “Energy: Week in Review, Vol. 

VI – Issue 142” (London: 17 July 2012); United Kingdom from O. 

Vukmonovic, “Britain sets five-year plan to spur solar, biomass 

energy,” Reuters, 19 December 2012. 

73 Australia and United States from Catherine S. Dicks, “PV 

Intelligence Brief, 20 November–4 December 2012,” PV Insider, 4 

December 2012; Japan from Think Geoenergy, “Japan to fund $19 

million geothermal R&D program starting 2013,” 10 October 2012, 

at http://thinkgeoenergy.com/archives/13483; Qatar from Qatar 

National Research Fund, “QNFR funded research advancing 

Qatar’s vision for post-carbon sustainable future,” 12 May 2012, 

at www.qnrf.org/newsroom/in_the_media/detail.php?ID=3245; 

United Kingdom from K. Ross, “UK Launches GBP 20 Million Wave 

Energy Contest,” RenewableEnergyWorld.com, 5 April 2012. 

74 Danish Ministry of Climate, Energy and Building, “DK Energy 

Agreement,” 22 March 2012, at www.kemin.dk/en-US/Climate_ 

energy_and_building_policy/Denmark/energy_agreements/ 

Documents/FAKTA%20UK%201.pdf. 

75 B. Epp, “Kenya: Regulation Increases Solar Water Heater Uptake,” 

SolarThermalWorld.org, 17 April 2012. 

76 New Hampshire from DSIRE USA Database, “New Hampshire: 

Renewables Portfolio Standard,” 11 January 2013, at www. 

dsireusa.org; Maryland from DSIRE USA Database, “Maryland: 

Renewable Portfolio Standard,” 23 May 2012, at www.dsireusa. 

org; Ohio from DSIRE USA Database, “Alternative Energy Portfolio 

Standard,” 8 November 2012, at www.dsireusa.org. 

77 Wilson Rickerson, Meister Consulting, personal communication 

with REN21, 1 March 2013. 

78 Sidebar 7 is based on the following sources: In its 450 Scenario, 

relative to the New Policies Scenario, the IEA’s World Energy 

Outlook (2012) projects that carbon dioxide emissions avoided 

through energy efficiency could amount to 2.2 gigatonnes (Gt) 

by 2020 and 6.3 Gt by 2035 (71% and 42% of total emissions 

avoided by 2020 and 2035, respectively), with renewables 

avoiding 0.5 Gt in 2020 and 4.1 Gt in 2035 (17% and 27% of total 

emissions avoided by 2020 and 2035, respectively); see IEA, op. 

cit. note 2, Figure 8.6, p. 253; synergies described in “Feature: 

Renewable Energy and Energy Efficiency,” in REN21, op. cit. note 

24, p. 93; energy intensity improvements and slow-down rates 

from IEA, op. cit. this note, p. 271; potential savings from United 

Nations Industrial Development Organization (UNIDO), Global 

Energy Efficiency Benchmarking: An Energy Policy Tool (Vienna: 

2011); new and existing buildings from D. Urge-Vorsatz et al., 

“Chapter 10: Towards Sustainable Energy End Use: Buildings,” 

in Global Energy Assessment (Cambridge, U.K.: Cambridge 

University Press, 2012); German “Energiewende” from Arne 

Jungjohann, “Arguments for a renewable energy future,” 28 

November 2012, at www.boell.org/web/index-The-German-Energy-Transition.html. 

Note that Germany’s Renewable Energy 

Act of 2012 aims to increase the renewable share of electricity 

to 35% by 2020, and to 80% by 2050, per German Renewable 

Energy Sources Act, applicable as of 1 January 2012, www. 

bmu.de/fileadmin/bmu-import/files/english/pdf/application/pdf/ 

eeg_2012_en_bf.pdf; German national efficiency targets call 

for a 20% reduction in primary energy consumption by 2020, 

and 50% by 2050 (base year 2008), based on specific sectoral 

targets and policy measures, per Barbara Schlomann et al., 

“Energy Efficiency Policies and Measures in Germany,” ODYSSEE- 

MURE 2010, (Karlsruhe: Fraunhofer Institute for Systems and 

Innovation Research, November 2012), at www.odyssee-indicators.org/publications/PDF/germany_nr.pdf; 

Italy’s National 

Energy Strategy at www.sviluppoeconomico.gov.it/images/ 

stories/documenti/20121115-SEN-EN.pdf; United States from 

U.S. Environmental Protection Agency, “Incorporating Energy 

Efficiency/Renewable Energy in State and Tribal Implementation 

Plans,” www.epa.gov/airquality/eere/; consumer behaviour from 

Karen Ehrhardt-Martinez with John A. Laitner, and Kenneth M. 

Keating, Pursuing Energy-Efficiency Behavior in a Regulatory 

Environment: Motivating Policy Makers, Program Administrators, 

and Program Implementers (Berkeley, CA: California Institute 

for Energy and Environment, August 2009); case studies in this 

section from International Partnership for Energy Efficiency 

Cooperation (IPEEC) database, “Making Energy Efficiency Real 

(MEER)”, www.ipeec.org, forthcoming July 2013; UN Food and 

Agriculture Organization, “Energy Smart Food for People and 

Climate,” www.fao.org/energy/81350/en/; Sustainable Energy for 

All, “Sustainable Energy for All Commitments—Highlights for Rio 

+20,” www.sustainableenergyforall.org/actions-commitments/ 

high-impact-opportunities/item/109-rio-plus-20, viewed January 


79 Austria from Ministry of Life, “Belrlakovic/Mitterlehner: New 

funding initiative for thermal rehabilitation starts 1 February,” 

27 January 2012, at www.lebensministerium.at/lmat/presse/ 

umwelt/therm_sanierg_012012.html; Czech Republic from 

Solar District Heating, “The new act of law on supported energy 

sources adopted in the Czech Republic,” 20 January 2012, at 

www.solar-district-heating.eu/NewsEvents/News/tabid/68/ 

ArticleId/182/The-new-act-of-law-on-supported-energy-sourcesadopted-in-the-Czech-Republic.aspx. 

80 Danish Ministry of Climate, Energy and Building, op. cit. note 74. 

81 Germany from BMU, “Bundesumweltministerium verbessert die 

Förderung für Wärme aus erneuerbaren Energien,” press release 

(Berlin: 8 August 2012). The Italian grant scheme currently 

provides payments of USD 230 (170 EUR)/m 2 per year for two 

years for small-scale systems, and USD 74.4 (55 EUR)/m 2 per year 

for five years for large-scale systems; when combined with solar 

cooling, these payments rise to USD 344.7 (255 EUR)/m 2 /year for 

two years and USD 112.2 (83 EUR)/m 2 for five years, respectively, 

per B. Epp, “Italy: Government Approves New Subsidy Scheme,” 

SolarThermalWorld.org, 27 December 2012; Luxembourg from 

Le gouivernement du Grand-Duché du Luxembourg, “Prime 

House,” 18 December 2012, at www.environnement.public.lu/ 

actualites/2012/12/Primes/2012_12_18_prime_House_communiqu___de_presse.pdf. 

82 Portugal from B. Epp, “Portugal: Small Residential Grant Scheme, 

but ‘Big’ Requirements,” SolarThermalWorld.org, 18 December 

2012. The United Kingdom’s Renewable Heat Premium Payment 

grant programme was opened to new projects in two separate 

rounds in 2012 and early 2103. Phase 2 of the programme was 

opened to new projects in 2012, and Phase 3 was opened in early 

2013, per U.K. Department of Energy and Climate Change, “Next 

Steps on Renewable Heat,” 20 September 2012, at 

www.decc.gov.uk/en/content/cms/news/pn12_106/ 

pn12_106.aspx; Energy Saving Trust, “Renewable Heat 

Premium Payment Phase 2,” www.energysavingtrust. 

org.uk/Generating-energy/Getting-money-back/ 

Renewable-Heat-Premium-Payment-Phase-2. 

83 Uruguay from Uruguay Ministry of Industry, Energy and Mining- 

National Energy, “Solar Energy and Energy Policy,” 2012, at 

www.energiasolar.gub.uy/cms/index.php/normativaest. Support 

for the implementation of CSP in India was done in partnership 

with United Nations Development Programme and the Global 

Environment Facility, per MNRE, “UNEP-GEF project on 

Concentrated Solar Heat,” revised 4 March 2013, at www.mnre. 

gov.in/file-manager/advertisement/eoi-undp-gef-03122012. 

pdf, and B. Epp, “India: Uttarakhand State Increases Solar Water 

Heater Rebate,” SolarThermalWorld.org, 1 March 2012. 

84 Natural Resources Canada,“ARCHIVED: ecoENERGY Retrofit- 

Homes program,” at http://oee.nrcan.gc.ca/residential/6551; 

Environment Canada, “News Release: Minister Kent to Propose 

a Regulatory Amendment to the Renewable Fuels Regulations,” 

press release (Ottawa: 31 December 2012). 

85 Energy Efficiency and Conservation Authority, “Phil Heatley: 

Thousands more NZ homes to be insulated,” 24 May 2012, at 

www.eeca.govt.nz. 

86 South Africa from Sugar Online, “South Africa’s New E10 Mix Rate 

Could Be Turning Point for Commoditization,” 5 October 2012, at 

www.sugaronline.com/home/website_contents/view/1201830; 

Turkey from Biofuels International, “Feature: Talking biofuels 

Turkey,” vol. 6, no. 7 (2012), at www.biofuels-news.com/content_ 

item_details.php?item_id=585; Zimbabwe’s E5 mandate is set to 

be subsequently raised to E10 and later to E15, although no dates 

for these increases have been set. M. Sapp, “Green Fuel re-starts 

ethanol production as cabinet approves E5,” biofuelsdigest.com, 

7 January 2013. 

87 Saskatchewan Ministry of the Economy, “Saskatchewan’s 

Renewable Diesel Mandate Kicks In,” 28 June 2012. 

88 India from M. Sapp, “India ethanol sales slow despite E5 launch 

168

on Dec. 1,” biofuelsdigest.com, 28 November 2012; Thailand 

from M. Sapp, “Thailand rolls out B5 mandate as palm oil supplies 

increase,” biofuelsdigest.com, 7 November 2012; United States 

from U.S. Environmental Protection Agency, EPA Proposes 2013 

Renewable Fuel Standards, January 2013, at www.epa.gov/otaq/ 

fuels/renewablefuels/documents/420f13007.pdf. 

89 J. Lane, “Is the EU Abandoning Biofuels?” 

RenewableEnergyWorld.com, 19 September 2012; Ministry of 

Life, “Berlakovich: Introduction of E10 is temporarily suspended,” 

17 September 2012, at www.lebensministerium.at/presse/ 

umwelt/120917E10.html. 

90 Ministry of Life, op. cit. note 89. 

91 N. Nguyen, “Request to Waive U.S. Renewable Fuels Standard 

Denied by EPA,” RenewableEnergyWorld.com, 19 November 

2012. 

92 A. Herndon, “Cellulosic Biofuel to Surge in 2013 as First Plants 

Open,” Bloomberg.com, 11 December 2012. 

93 U.S. Department of Energy, “Alternative Fuels Data Center: 

Federal Laws and Incentives,” at www.afdc.energy.gov/laws/ 

fed_summary. 

94 IEA/IRENA, Global Renewable Energy Policies and Measures 

Database, “Australian Biofuels Investment Readiness Program,” 

12 December 2012. 

95 S. Nielsen, “Brazil Doubling Sugar-Cane Biomass Research Plan 

to $988 Million,” Bloomberg.com, 19 September 2012. 

96 New Zealand from J. Lane, “Biofuels Mandates Around the 

World: 2012,” biofuelsdigest.com, 22 November 2012; United 

Kingdom from HM Revenue & Customs, “Biofuels and other fuel 

substitutes,” at http://customs.hmrc.gov.uk; UKPia, “Biofuels in 

the UK,” February 2012, at www.ukpia.com/Libraries/Download/ 

biofuels_in_the_UK_February_2012.sflb.ashx. 

97 “Directive 2009/28/EC,” Official Journal of the European Union, 

23 April 2009, at http://eur-lex.europa.eu/LexUriServ/LexUriServ. 

do?uri=Oj:L:2009:140:0016:0062:en:PDF. 

98 IEA, Tracking Clean Energy Progress (Paris: 2012); T. McCue, 

“Worldwide Electric Vehicle Sales to Reach 3.8 Million Annually by 

2020,” Forbes, 3 January 2013. 

99 “India Sets National Electric Vehicle Targets,” 

SustainableBusiness.com, 14 January 2013. 

100 Italy from Foundation REEF, “100% energia verde,” at www. 

centopercentoverde.org/pages/100_verde.php; trans-Europe 

from Finnish Association for Nature Conservation, “EKOenergy: 

network and label,” at www.ekoenergy.org/about-us; Canada 

from Center for Resource Solutions, “Green-e Energy,” at www. 

green-e.org/getcert_re.shtml; Germany from Energievision E.V., 

“OK Power,” at www.ok-power.de/home.html. 

101 World Future Council, From Vision to Action: A Workshop Report on 

100% Renewable Energies in European Regions (Hamburg: March 

2013), pp. 36–37; U.S. National Renewable Energy Laboratory, 

“Clean Energy Policy Analyses: Analysis of the Status and 

Impact of Clean Energy Policies at the Local Level” (Boulder, CO: 

December 2010). 

102 India from “Solar Cities in India,” greenworldinvestor.com, 

September 2012, and from “Solar water heaters must in all Surat 

buildings,” The Times of India, September 2012; Japan from World 

Wind Energy Association (WWEA), “Energy Policy Reform and 

Community Power in Japan,” WWEA Quarterly Bulletin, October 

2012, p. 26, and from Noriaki Yamashita and Shota Furuya, “New 

Japanese Energy Strategy and FIT – National and Local Prospects 

and Barriers,” presentation at Freie Universität Berlin and ISEP, 

Reform Workshop, Salzburg, Austria, 29 August 2012, at www. 

polsoz.fu-berlin.de/polwiss/forschung/systeme/ffu/veranstaltungen_ab_2012/pdfs_salzburg/NoriShota.pdf. 

103 The Urban-LEDS project with UN-HABITAT and ICLEI as implementation 

partners, funded by the European Commission. See 

www.urban-leds.org. 

104 EU Covenant of Mayors, “Signatories,” www.covenantofmayors. 

eu/about/signatories_en.html, viewed March 2013. 

105 “City Utility Push Germany’s Switch to Renewables,” 

RenewableEnergyWorld.com, 4 October 2012. Several U.S. 

cities, including San Francisco in California, Cincinnati in Ohio, 

and Oak Park and Evanston in Illinois, committed in 2012 to 

purchasing 100% renewable power under community aggregation 

programmes, per The Solar Foundation, “Community 

Choice Aggregation Fact Sheet,” January 2013, at www. 

thesolarfoundation.org/sites/thesolarfoundation.org/files/ 

TSF_CCAfactsheet_Final.pdf. 

106 City of Copenhagen, Climate & Environment, “CPH 2025 

Climate Plan” (Copenhagen: 23 August 23 2012), pp. 7–10; 

Energy Cities, “Frederikshavn’s New Year wish: 100 % fossil 

free in 2030,” 21 December 2012, at www.energy-cities.eu/ 

Frederikshavn-s-New-Year-wish-100. 

107 City of Seattle, “Seattle Climate Action Plan” (Seattle: December 

2012), at http://cosgreenspace.wpengine.netdna-cdn.com/wp-content/uploads/2011/04/GRCReport_Exec-Summary-1-29-13.pdf. 

108 “Japan to build world’s largest offshore wind farm,” New Scientist, 

16 January 2013. 

109 South Korea from RTCC, “Mayor of Seoul aims to cancel out a 

nuclear power plant with climate actions,” October 2012, at www. 

rtcc.org; China from Shanghai City Government, “Shanghai New 

Energy 12th five-year plan” (Shanghai: January 2012), at www. 

shanghai.gov.cn/shanghai/node2314/node25307/node25455/ 

node25459/u21ai569188.html, and from “Shanghai announces 

new-energy plan,” eco-urbanliving.com, 5 January 2012. 

110 Institute for Local Self-Reliance, “U.S. CLEAN Programs Where 

Are We Now? What Have We Learned?” (Washington, DC: June 

2012); Marin from MCE Clean Energy. "Marin Energy Authority, 

Feed-In Tariff for Distributed Renewable Generation (FIT)", 

November 2012, at https://mcecleanenergy.com/PDF/FIT_ 

Tariff_11.01.12.pdf; Long Island from Long Island Power Authority, 

“LIPA Board of Trustees Approve First Feed-In Tariff Program in 

New York State,” press release (Uniondale, NY: 28 June 2012). 

111 Japan from Yamashita and Furuya, op. cit. note 102, and from 

WWEA, op. cit. note 102, p. 26; Saudi Arabia from “First Saudi 

Arabia Utility Scale Clean Energy Plant to be Built in Mecca,” 

RenewableEnergyWorld.com, 25 September 2012. 

112 The wind park is located north of the German island of Borkum, 

per “City Utility Push Germany’s Switch to Renewables,” 

RenewableEnergyWorld.com, 4 October 2010; “Big Energy 

Battle: An Unlikely Effort to Buy Berlin’s Grid,” Spiegel Online, 5 

March 2013, at www.spiegel.de. 

113 Public Services International Research Unit (PSIRU), “Re- municipalising 

municipal services in Europe” (Greenwich, U.K.: May 

2012), at www.epsu.org/IMG/pdf/Redraft_DH_ 

remunicipalization.pdf; “Berlin to Buy Back Grid and Go 100 

Percent,” renewablesinternational.net, 7 December 2012. 

114 Yamashita and Furuya, op. cit. note 102; WWEA, op. cit. note 102, 

p. 26. 

115 Valencia Energy Agency, “Ayudas en materia de Energías 

Renovables y Biocarburantes,” June 2012, at www.aven.es. 

116 Environmental Leaders, “Biggest PACE Green Building Program 

Launches in California,” 20 September 2012, at www.environmentalleader.com. 

117 Rajkot from “Rajkot Municipal Corporation plans 50-kW Solar 

Power System,” Times of India, 29 April 2012; Surat from Energy 

Alternatives India, “Surat Municipal Corporation to inaugurate 

rooftop solar plant at the Science Centre,” 8 January 2013, at 

www.eai.in/360/news/pages/8248; Agartala from “Agartala to be 

Northeast India’s first solar city,“ Zee News, 24 March 2013, at 

http://zeenews.india.com. 

118 Seoul from Ecoseed, “Seoul to Build Solar Facilities in 1000 

school,” 18 June 2012, at www.ecoseed.org; Wellington from 

“City council plans for its offices,” Dominion Post, 18 December 

2012; Dhaka from “Sun to power some streetlights in Bangladesh 

capital,” Reuters, 7 June 2012; Washington, D.C. from U.S. 

Department of Energy, “Washington D.C. City Government 100% 

Wind Powered,” 30 September 2012, at http://apps1.eere.energy. 

gov/states/state_news_detail.cfm/news_id=18675/state=DC. 

119 Calgary from IRENA, “Renewable Energy Policy in Cities: Selected 

Case Studies - Malmö, Sweden” (Abu Dhabi: January 2013), 

p. 7; Houston from "Texas, Incentives/Policies for Renewables 

and Efficiency, City of Houston - Green Power Purchasing", 17 

December 2012, at http://www.dsireusa.org/incentives/incentive. 

cfm?Incentive_Code=TX22R. 

120 Inhabitat, “The SunCarrier Omega Building Is India’s First 

Net-Zero Energy Commercial Building,” 1 January 2012, at http:// 

inhabitat.com. 

121 Inhabitat, “Solar-Powered ZCB Is the First Zero Carbon Building in 

Hong Kong,” 14 January 2013, at http://inhabitat.com. 

122 Seattle from Seattle Government, Department of Building and 

Planning, Permits, “Priority Green, Living Building Pilot,” at www. 

seattle.gov/dpd/Permits/GreenPermitting/LivingBuildingPilot/ 

04 



default.asp viewed 15 April 2013; New York from “This Week 

in Clean Economy: NYC Takes the Red Tape Out of Building 

Green,” InsideClimateNews.org, 4 May 2012; Lancaster from 

“California City Wants to Require Solar on Every New Home,” 

GreentechMedia.com, 1 March 2013. 

123 “Solar Water Heater Companies in India to Shine as Indian Cities 

(Surat, Kolkata) make SWH Mandatory,” GreenWorldInvestor. 

com, 28 September 2012; “Solar water heaters must in all Surat 

buildings,” Times of India, 17 September 2012. 

124 City of Johannesburg, “Launch of Solar Water Heating Programme 

by City Power,” press release (Johannesburg: 8 October 2012). 

125 Sustainable Energy Africa, “EEP Solar Water Heater implementation 

in City of Cape Town,” www.sustainable.org.za/index. 

php?option=com_content&view=article&id=66&Itemid=98, 

viewed 14 April 2013. 

126 Beijing from “New Buildings in Beijing Next Month and the 

Mandatory Installation of Solar,” 27 February 2012, at http:// 

news.dichan.sina.com.cn/2012/02/27/447929.html; Kyoto from 

Yamashita and Furuya, op. cit. note 102, and from Shota Furuya, 

ISEP, Tokyo, personal communication with REN21, 4 February 


127 “NYC biodiesel-blended heating oil requirement starts Oct. 1,” 

biodieselmagazine.com, 1 October 2012. 

128 Chris Baber, “Low Carbon District Energy in Vancouver,” 

presented at Sustainable Cities International Symposium 

2012, Vancouver, British Columbia, 5 October 2012, at www. 

metrovancouver.org/2012SCI/Program/Presentations/Energy- 

LowCarbonDistrictEnergy-ChrisBaber.pdf. 

129 Braedstrup from SDH Solar District Heating, “Braedstrup Solar 

Park in Denmark is now a reality!” 25 October 2012, at www. 

solar-district-heating.eu; Dunedin from Ralph Sims, Massey 

University, Palmerston North, personal communication with 

REN21, January 2013, and from “Clean Heating for Otago,” Otago 

Bulletin, 5 October 2012, p. 3, at www.otago.ac.nz. 

130 Aberdeen from “Planning permission granted for 2 biomass CHP 

plants in the U.K.,” biomassmagazine.com, 23 January 2013; 

Aarhus from Urban Energy Solutions, “Aarhus and Copenhagen – 

Energy Efficiency Landmarks for Europe,” 14 February 2013, at 

http://blog.ramboll.com/urbanenergysolutions/innovation-and-technology/aarhus-and-copenhagen-energy-efficiency-landmarks-for-europe-4.html. 

The U.S. city of Montpelier, 

Vermont, also announced in 2012 that it will install a central 

district energy system to provide heat and power, per U.S. 

Department of Energy, Energy Efficiency and Renewable Energy, 

“City of Montpelier Project,” January 2012, at http://www1.eere. 

energy.gov/office_eere/communityre/montpelier.html. 

131 “Solar Update,” Newsletter of the International Energy Agency 

Solar Heating and Cooling Programme, June 2012, pp. 6–7, at 

http://archive.iea-shc.org/publications/downloads/2012-06-SolarUpdate.pdf. 

132 Philippine Information Agency, “City council endorses construction 

of third geothermal plant in Kidapawan City,” 22 May 2012, at 

www.pia.gov.ph/news/index.php?article=2301337663334. 

133 City of Philadelphia, “Mayor Nutter Cuts Ribbon on Wastewater 

Geothermal Heating Project,” 13 April 2012, at http://cityofphiladelphia.wordpress.com. 


RenewableEnergyWorld.com, October 2012. 

135 Mexico City further developed a Bus Rapid Transit system in 2012; 

Guangzhou in China started to provide a subsidy incentive of USD 

1,700 for the purchase of hybrid cars, and restricted the number 

of new car registrations to 120,000 per year, reserving 10% for 

electric, hybrid, and plug in vehicles; and Bogota, Venezuela and 

Mexico City launched all-electric taxi fleets. Mexico City from 

Renewable Energy Mexico, “Mexico City welcomes its first fleet 

of electric cabs,” May 2012, at www.renewableenergymexico. 

com/?p=275; Ghangzhou from “Chinese city offers hybrid subsidy 

to boost sales,” Christian Science Monitor, 17 August 2012; Bogota 

from “Bogotá Launches All-electric Taxi Fleet Using Long-Range 

BYD e6 Cross-over Sedan,” BusinessWire.com, December 2012. 

136 “Curitiba Unveils Hybrid Bus at Rio 20 Conference,” 

Curitiba in English, 15 June 2012, at http://curitibainenglish.com.br/government/urban-mobility/ 

curitiba-unveils-hybrid-bus-at-rio-20-conference/. 

137 Amsterdam aims to be 100% fossil fuel-free by 2040, so all of its 

EV charging stations will be 100% renewables powered, per “Top 

EV-Friendly Cities: What Are They Doing Right?” Climate Progress, 

July 2012 at http://thinkprogress.org/climate/2012/07/03/510344/ 

top-ev-friendly-cities-what-are-they-doing-right. 

138 Barcelona from “World’s First Wind Powered EV Charging Station 

Installed in Barcelona,” oilprice.com, 21 August 2012; Melbourne 

from “Is Australia ready for the electric car,” SmartPlanet.com, 27 

June 2012. 

139 Panasonic, “Panasonic to Establish Fujisawa Town Management 

Company with Its Partner Companies,” press release (Tokyo: 1 

October 2012). 


RenewableEnergyWorld.com, 4 October 2010; Siemens and 

Stadtwerke München, “Stadtwerke München and Siemens Jointly 

Start Up Virtual Power Plant,” press release (Nuremberg and 

Munich: 4 April 2012). 

141 Buzios from Endesa, “The Chairman of Endesa inaugurates Latin 

America’s first smartcity in Brazil,” press release (Rio de Janeiro: 

21 November 2012); Santiago from Tendencias, “Chilectra presenta 

proyecto de Smartcity,” 7 January 2013, at www.latercera. 

com/noticia/tendencias/2013/01/659-502371-9-chilectra-presenta-proyecto-de-smartcity-santiago.shtml. 

142 carbonn Climate Cities Registry, “carbonn Climate Cities Registry 

November 2012 Update,” at http://citiesclimateregistry.org. 

143 C40 Cities Climate Leadership Group, “C40 Welcomes Oslo, 

Vancouver, Venice and Washington, DC as New Members” (New 

York: 4 December 2012); EU Covenant of Mayors, “Sustainable 

Energy Action Plans,” www.covenantofmayors.eu/about/ 

signatories_en.html, viewed March 2013; Mexico City Pact, 

“Signatories,” www.mexicocitypact.org/en/the-mexico-citypact-2/list-of-cities/, 

viewed March 2013. 

170

RURAL RENEWABLE ENERGY 

1 International Energy Agency (IEA), World Energy Outlook 2012 

(Paris: 2012). 

2 Baker Institute, Poverty, Energy and Society (Houston, TX: 

Energy Forum, Institute for Public Policy, Rice University, 

2006); United Nations Environment Programme, “Sustainable 

Energy for All” (Nairobi: 2006), at www.unep.org/climatechange/ClimateChangeConferences/COP18/Booklet/ 

SUSTAINABLEENERGYFORALL.aspx. 

3 For example, the company Ecoinnovation manufactures 

1 kW hydro turbines from washing machine motors; see 

Ecoinnovation Web site, www.ecoinnovation.co.nz. Alliance for 

Rural Electrification, Rural Electrification with Renewable Energy: 

Technologies, Quality Standards and Business Models (Brussels: 

June 2011). 

4 United Nations Development Programme (UNDP) and Energy 

Access for the Poor, Energizing the Millennium Development Goals 

(New York: October 2010). 

5 Alliance for Rural Electrification, op. cit. note 3. 

6 International Renewable Energy Agency (IRENA), Renewable 

Energy Technologies: Cost Analysis Series (Abu Dhabi: June 2012). 

7 Innovative uses include the Solar Suitcase developed by We Care 

Solar; see Web site at http://wecaresolar.org/. 

8 The 2.1 million systems were up from 280,000 installations 

in 2002, from IRENA, International Off-Grid Renewable 

Energy Conference: Key Findings and Recommendations 

(Abu Dhabi: forthcoming 2013); Justin Guay, “Small 

Is Big: Bangladesh Installs One Million Solar Home 

Systems,” Climate Progress.org, 18 December 2012, at 

http://thinkprogress.org/climate/2012/12/18/1353791/ 

small-is-big-bangladesh-installs-one-million-solar-home-systems. 

9 Swedish International Development Cooperation Agency (SIDA), 

“Renewable Energy Helps Rural Development,” 31 August 2012, 

at www.sida.se/English/Countries-and-regions/Africa/Tanzania/ 

Programmes-and-projects1/Renewable-energy-helps-ruraldevelopment/; 

Oteng-Adjei, “Remote Off-grid Communities to 

Benefit from Solar Lantern,” BusinessGhana.com, 7 September 

2012. Sidebar 8 from African Solar Designs and MARGE, Mini-Grid 

Policy Toolkit (Brussels and Paris: Energy Initiative Partnership 

Dialogue Facility (EUEI PDF), Renewable Energy Network for the 

21st Century (REN21), and the Alliance for Rural Electrification, 

2013). 

10 World Wind Energy Association, communication with REN21, 

March 2013. 

11 Electricity generation from Mike Long et al., “Geothermal Power 

Production: Steam for Free,” POWER Engineers, 2012, at https:// 

www.powereng.com/wp-content/uploads/2012/08/Power-Gen- 

Geothermal.pdf. A geothermal plant being developed in the 

Caribbean island of Dominica (population 70,000) is nearing 

completion with the expectation of exporting surplus power to 

other islands some 20 kilometres away, per Global Sustainable 

Energy Islands Initiative, “Dominica,” at http://gseii.org/islands/ 

dominica.html. 

12 Alliance for Rural Electrification, Hybrid Mini-grids for Rural 

Electrification: Lessons Learned (Brussels: March 2011). 

13 See, for example, Bärbel Epp, “Solar Thermal Scales New Heights 

in China,” RenewableEnergyWorld.com, 27 June 2012. 

14 There are an estimated 155 million households and commercial 

farms where sufficient animal manure can be collected on a daily 

basis, per Global Alliance for Clean Cookstoves, “The Solutions,” 

www.cleancookstoves.org/our-work/the-solutions/cookstove-fuels.html, 

viewed 1 March 2013. 

15 Global Alliance for Clean Cookstoves, Washington, D.C, communication 

with REN21, December 2012; Bridge to India Pvt. 

Ltd., Delhi, communication with REN21, December 2012; The 

Energy and Resources Institute (TERI), Delhi, communication with 

REN21, December 2012; Freshta Mayar, “Biomass Gasification – 

A simple energy solution for rural Cambodia,” Youth Leader, www. 

asia.youth-leader.org/?p=4925. 

16 CleanStar Ventures (United States) linked with Novozymes 

(Denmark) to create CleanStar Mozambique, which 

operates the facility, per Marc Gunther, “CleanStar 

Mozambique: Food, Fuel and Forests at the Bottom of 

the Pyramid,” 27 May 2012, at www.marcgunther.com/ 

cleanstar-mozambique-food-fuel-and-forests-at-the-bottom-ofthe-pyramid. 

See also Jen Boynton, “Africa’s First Sustainability 

Biofuel Plant Opens in Mozambique,” Triplepundit.com, 17 May 

2012. 

17 C. Mitchell et al., “Policy, Financing and Implementation,” Chapter 

11 in O. Edenhofer et al., eds., IPCC Special Report on Renewable 

Energy Sources and Climate Change Mitigation (Cambridge, U.K. 

and New York, NY: Cambridge University Press, 2011); Teresa 

Malyshev, Looking Ahead: Energy, Climate Change and Pro-poor 

Responses (Paris: IEA, 2009). 

18 EnDev, “Countries,” http://endev.info/content/Map:EnDev_ 

Countries, viewed 2012. 

19 REN21, Renewables 2012 Global Status Report (Paris: 2012), 

pp. 125–126 and personal communications with regional report 

contributors. 

20 David Vilar, ECOWAS Centre for Renewable Energy and Energy 

Efficiency (ECREEE), personal communication with REN21, 


21 Ibid. 

22 Ernesto Macias, President, Alliance of Rural Electrification, 

Brussels, personal communication with REN21. Information 

based on the presentation by ECOWAS, IRENA, and ARE at the 

International Off-grid Renewable Energy Conference (IOREC), 

Accra, Ghana, 1–2 November 2012. 

23 World Bank and Infrastructure Development Company Limited, 

“IDCOL Solar Energy Project,” www.idcol.org/energyProject.php. 

24 K. Riahi et al., Chapter 17 in GEA, Global Energy Assessment: 

Toward a Sustainable Future (Cambridge University Press and 

International Institute for Applied Systems Analysis, 2012), pp. 

1203–1306. 

25 In Mali, the rural energy agency has spearheaded the development 

of renewable energy projects. Mali’s energy service 

company, Yeelen Kura, piloted a 72 kW solar PV plant connected 

to an eight-kilometre distribution network, the first of its type and 

scale in West Africa. The PV mini-grid has been operational since 

2006, providing electricity to 500 households, community institutions, 

and microenterprises. Under a fee-for-service business 

model, Yeelen Kura is responsible for delivering energy services, 

installation, maintenance, and general customer support, per 

ECREEE, Baseline Report for the ECOWAS Renewable Energy Policy 

(Praia, Cape Verde: October 2012). 

26 Francisca M. Antman, “The Impact of Migration on Family 

Left Behind” (Boulder, CO: University of Colorado at Boulder 

Department of Economics, 2010). 

27 Koffi Ekouevi and Reto Thoenen, “Top Down Concessions for 

Private Operators in Mali and Senegal,” PowerPoint presentation, 

at http://siteresources.worldbank.org/EXTAFRREGTOPENERGY/ 

Resources/717305-1264695610003/6743444- 

1268073476416/3.3.TopDown_concessions_private_operators_Senegal_N_Mali.pdf. 

28 International Finance Corporation (IFC), “From Gap to 

Opportunity: Business Models for Scaling Up Energy Access” 

(Washington, DC: 2012). 

29 Ernesto Macias, President, Alliance for Rural Electrification, 

Brussels, personal communication with REN21, January 2013. 

30 United Nations Economic and Social Commission for Asia and 

the Pacific (UNESCAP), Leveraging Pro-Poor Public-Private- 

Partnerships (5Ps) for Rural Development - Widening access to 

energy services for rural poor in Asia and the Pacific (Bangkok: 

2012). 

31 United Nations Development Programme, “Sustainable Energy,” 

www.undp.org/content/undp/en/home/ourwork/environmentandenergy/focus_areas/sustainable-energy.html. 

32 John Rogers et al., Innovations in Rural Energy Delivery (N. 

Chelmsford, MA: Navigant Consulting and Soluz, 2006). 

33 World Bank, Designing Sustainable Off-Grid Rural Electrification 

Projects: Principles and Practices (Washington, DC: November 

2008). 

34 Ibid. 

35 Ibid. 

36 World Bank, “Solar Power Lights Up Future for 

Mongolian Herders,” 20 September 2012, at www. 

worldbank.org/en/news/feature/2012/09/20/ 

solar-power-lights-up-future-for-mongolian-herders. 

37 IFC, op. cit. note 28. 

05 


Endnotes 05 RURAL RENEWABLE ENERGY 

38 Estimate of 650 million from Veronika Gyuricza, “Challenges Amid 

Riches: Outlook for Africa,” Journal of the International Energy 

Agency, Spring 2012, p. 38; 76% based on sub-Saharan population 

of 860 million in 2012, per Elizabeth Rosenthal, “Africa’s 

Population Boom,” New York Times, 14 April 2012. 


40 ECREEE receives support from the Africa-EU Renewable Energy 

Cooperation Programme (RECP), a flagship programme under the 

Africa-EU Energy Partnership (AEEP). 

41 David Vilar, ECREEE, personal communication with REN21, 


42 “ECOWAS Energy Ministers Adopt Regional Policies on Renewable 

Energy and Energy Efficiency,” ECREEE Newsletter, Vol. 6 (March 

2013). 

43 REN21, MENA Renewable Energy Status Report 2012 (Paris: 

December 2012), Executive Summary. 

44 ECREEE, op. cit. note 25. 

45 Antonio Ruffini, “African False Dawn, or The Real Thing?” ESI 

Africa, Vol. 3 (2012), at www.esi-africa.com/node/15501. 

46 Energy efficiency initiatives, such as the Appliance Market 

Transformation Project focusing on refrigeration appliances, were 

also launched in 2012, per “Remote Off-grid Communities to 

Benefit from Solar Lantern – Oteng-Adjei,” Ghana News Agency, 6 

September 2012, at www.ghananewsagency.org/details/Science/ 

Remote-off-grid-communities-to-benefit-from-solar-lantern- 

Oteng-Adjei/?ci=8&ai=48826. 

47 Republic of Mali, Ministry of Energy and Water, Scaling Up 

Renewable Energy (Bamako: September 2011). 

48 Wim Jonker Klunne, Energy for Africa (Pretoria: Council for 

Scientific and Industrial Research, 2012). 

49 Rwanda Development Board, Energy: The Opportunity in Rwanda 

(Kigali: 2012), at www.rdb.rw/uploads/tx_sbdownloader/ 

Opportunities_Energy_Sector.pdf. 

50 Emma Hughes, “Isofoton Brings Power to the People of Rwanda,” 

PVTech.org, 12 January 2011. 

51 Ibid.; “Isofoton Awarded Rwandan Solar Tender,” Solarbuzz.com, 

17 November 2010. 

52 SIDA, op. cit. note 9. 

53 “Lighting the Way,” The Economist, 1 September 2012. 

54 Uganda Rural Electrification Agency Web site, www.rea.or.ug. 

55 World Bank, “China Renewable Energy Scale Up Programme” 

(Washington, DC: 2013). 

56 Mongolia, Nepal, and Vietnam from UNDP, “Toward an ‘Energy 

Plus’ Approach for the Poor” (Bangkok: 2011); United Nations 

Economic and Social Commission for Asia and the Pacific, 

“Chapter 1” in Energy and Sustainable Development (Bangkok: 

2008). 

57 IEA, World Energy Outlook: Energy for All (Paris: 2011). 

58 S.C. Bhattacharya, “Overview of the Clean Cooking Challenge,” 

PowerPoint presentation, February 2012, at http://sei-international.org/mediamanager/documents/Projects/Climate/ 

Improving-energy-access/SEI-TERI-DFID-cookstoves-consumerchoice-Feb2012-Sribas-Bhattacharya.pdf. 

59 Infraline Energy Research and Information Services, “Remote 

Village Electrification,” February 2012, www.indiarenewableenergy.in. 

60 The schemes are named “One child, One solar lamp” and “Solar 

for each family,” per Debajit Palit, TERI, Delhi, personal communication 

with REN21, December 2012. 

61 China’s Energy Policy 2012 (Beijing: October 2012), at www.gov. 

cn/english/official/2012-10/24/content_2250497_9.htm. 

62 World Bank, op. cit. note 33. 

63 Worldwatch Institute, “India Announces Improved Cook Stove 

Program,” World Watch, April 2010, at www.worldwatch.org/ 

node/6328. 

64 Infrastructure Development Company Limited, Bangladesh Rural 

Electrification and Renewable Energy Development Project (Dhaka: 

June 2012), at www.idcol.org/Download/RERED_II_ESMF.pdf. 


66 Gonzalo Bravo, Fundación Bariloche, personal communication 

with REN21, January 2013. 

67 ITCS Technical Institute Web site, www.itcstechnicalinstitute.com. 

68 Comisión Federal de Electricidad, “Meeting the Dual Goal of 

Energy Access and Sustainability - CSP Deployment in Mexico,” 

PowerPoint presentation, May 2012, at www.esmap.org/sites/ 

esmap.org/files/CFE_Meeting_dual_goal_Mexico.pdf. 

69 World Bank, op. cit. note 33. 

70 David Biller, “CFE’s first solar plant set to start operations,” BN 

Americas, 21 February 2012, at www.bnamericas.com/news/ 

electricpower/cfes-first-solar-plant-set-to-start-operations. 

71 Latin American Energy Organisation (OLADE) and United Nations 

Industrial Development Organisation (UNIDO), Mexico: Final 

Report, Product 3: Financial Mechanism (Mexico City: August 

2011), at www.renenergyobservatory.org/uploads/media/ 

Mexico_Product_3__Eng_.pdf. 

72 World Bank, “Peru/World Bank: 140,000 People in Scattered 

and Vulnerable Rural Areas to Access Electricity,” press release 

(Washington, DC: 21 April 2011). 

73 Bravo, op. cit. note 66. 

74 Global Alliance for Clean Cookstoves “10,000 Improved 

Cookstoves—The Beginning of Eradicating Open Fire Cooking in 

Mexico,” press release (Washington, DC: 29 February 2012). 

75 M. Gifford, “A Global Review of Cookstove Programs,” M.S. 

Thesis (Berkeley, CA: Energy and Resources Group, University of 

California at Berkeley, 2010), at www.eecs.berkeley.edu/~sburden/misc/ 

mlgifford_ms_thesis.pdf. 

76 World Bank, Energy Sector Management Assistance Programme, 

“Central America Improved Cookstove Toolkit,” at www.esmap. 

org/sites/esmap.org/files/PCIA%20FORUM%20-%20CA%20 

ICS%20Toolkit%20feb%202011[final].pdf 

77 Gifford, op. cit. note 75. 

78 in O. Edenhofer et al., eds., op. cit. note 17, p. 18. 

79 IRENA, Renewable Energy Jobs and Access (Abu Dhabi: 2012). 

80 Ibid. 

172

Feature: SYSTEM TRANSFORMATION 

1 See R. Sims et al., “Integration of Renewable Energy into Present 

and Future Energy Systems,” Chapter 8 in O. Edenhofer et al., 

eds., IPCC Special Report on Renewable Energy Sources and 

Climate Change Mitigation (Cambridge, U.K. and New York: 

Cambridge University Press, 2012), and International Energy 

Agency (IEA), Harnessing Variable Renewables – A Guide to the 

Balancing Challenge (Paris: 2011). 

2 For a comprehensive overview, see Sims, op. cit. note 1. 

3 For more on the flexibility challenge for the electricity system, see 

IEA, op. cit. note 1. 

4 See Sims, op. cit. note 1, and also Institute for Solar Energy 

Supply Systems (ISET), University of Kassel (Germany), 

“Kombikraftwerk,” 31 April 2008, at www.kombikraftwerk.de/ 

index.php?id=27. This study about a combined renewable energy 

power plant demonstrated the technical feasibility of a 100% 

renewables-based power supply combined with storage capacities. 

In April 2011, a three-year follow-up project, “Kombikraftwerk 

2” (see www.kombikraftwerk.de/index.php?id=25) was launched, 

taking into account grid stability including frequency control and 

other technical requirements, thus further refining research about 

system transformation. 

5 Frank Sensfuss, Analysen zum Merit Order Effekt erneuerbarer 

Energien (Karlsruhe: 4 November 2011), at www.bmu.de/ 

fileadmin/bmu-import/files/pdfs/allgemein/application/pdf/ 

gutachten_merit_order_2010_bf.pdf; European Wind Energy 

Association (EWEA), Wind Energy and Electricity Prices: Exploring 

the Merit Order Effect (Brussels: April 2010). 

6 For more on the limitations of marginal cost based power markets 

and potential alternatives (such as capacity markets, capacity 

payments, etc.), see Bundesverband Erneuerbare Energie 

e.V. (BEE, German Renewable Energy Federation), Die Zukunft 

des Strommarktes (Bochum: 2011), and BEE, Kompassstudie 

Marktdesign. Leitideen für ein Design eines Strommarktsystems 

mit hohem Anteil fluktuierender Erneuerbarer Energien (Bochum: 

2012). 

7 The Danish government has decided that the country’s electricity 

and heating needs should be fully sourced from renewables by 

2050; see Danish Energy Agency, “Danish Climate and Energy 

Policy,” www.ens.dk/EN-US/POLICY/DANISH-CLIMATE-AND- 

ENERGY-POLICY/Sider/danish-climate-and-energy-policy.aspx. 

In its 2010 energy concept, the German government’s objective 

was set to reach a renewables share of 60% in final energy 

consumption and to reach 80% in the electricity sector. These 

targets were underlined in 2011, when—after the Fukushima 

catastrophe—the government committed to the complete 

phase-out of nuclear power by 2022. The Energy Concept of 

2010, revised in 2012, can be found at Federal Ministry for the 

Environment, Nature Conservation and Nuclear Safety (BMU), 

“The Federal Government's energy concept of 2010 and the 

transformation of the energy system of 2011,” www.bmu. 

de/fileadmin/bmu-import/files/english/pdf/application/pdf/ 

energiekonzept_bundesregierung_en.pdf. 

8 An estimated 15% of PV and 30% of wind in Europe in 2030 would 

require around 100 GW of storage systems (out of which 80 GW 

of pumped hydro), according to European Photovoltaic Industry 

Association, Connecting the Sun: Solar Photovoltaics on the Road 

to Large-Scale Grid Integration (Brussels: September 2012). 

9 The cost reduction in Germany amounted to USD 0.007/kWh 

(EUR 0.005/kWh) in 2011, and is expected to increase to more 

than USD .01/kWh (EUR 0.008/kWh) in 2013, per BMU, “Häufig 

gestellte Fragen,” www.erneuerbare-energien.de/fileadmin/ 

ee-import/files/pdfs/allgemein/application/pdf/faq_eeg-umlage_2013_bf.pdf 

(exchange rate as of 31 December 2012). The 

effect has also been seen in Denmark, Spain, and other countries. 

10 Sensfuss, op. cit. note 5; EWEA, op. cit. note 5. 

11 BEE, op. cit. note 6, both references. 

12 Ibid. 

13 Based on data for January through September 2012, from 

Danish Energy Agency, “Monthly Energy Statistics,” www.ens. 

dk/EN-US/INFO/FACTSANDFIGURES/ENERGY_STATISTICS_ 

AND_INDICATORS/MONTHLY%20STATISTIC/Sider/Forside.aspx, 

viewed 15 April 2013. 

14 Data for 2011 from Danish Energy Agency, “Renewables now 

cover more than 40% of electricity consumption,” press release 

(Copenhagen: 24 September 2012); end of 2012 from Global Wind 

Energy Council, Global Wind Report – Annual Market Update 2012 

(Brussels: April 2013). 

15 In March 2012, the Danish Parliament enacted the decision to 

phase out fossil fuels for power production and in the heating 

and cooling sector at the latest by 2050, from “Denmark 

Passes Legislation: 100% Renewable Energy by 2050!” 

SustainableBusiness.com, 30 March 2012, and from Danish 

Ministry of Climate, Energy and Building, Accelerating Green 

Energy Towards 2020: The Danish Energy Agreement of March 

2012 (Copenhagen: 2012). 

16 Energinet.dk, “Infrastructure Projects—Electricity,” www. 

energinet.dk/EN/ANLAEG-OG-PROJEKTER/Anlaegsprojekter-el/ 

Sider/default.aspx, viewed 26 December 2012. 

17 All 27 EU progress reports can be found at European Commission, 

“Renewable Energy: 2011 Progress Reports,” http://ec.europa.eu/ 

energy/renewables/reports/2011_en.htm, viewed 26 December 

2012. 

18 This statement should not be misunderstood to be celebrating 

recent policy changes such as the moratorium for all new 

renewables capacities, but CECRE remains a good example for 

how to deal with high shares of variable renewables. CECRE was 

established in 2006 by RED Eléctrica de España, the Spanish 

transmission system operator, as a special section of the central 

power control. For details of the operation as well as actual data 

about power flows within the country and between Spain and 

neighbours, see RED Eléctrica de España, “Centro de control de 

régimen especial,” www.ree.es/operacion/cecre.asp, viewed 26 


19 For details on the development of the Renewable Energy 

Law since 2000, and the recent 2012 amendment, see 

BMU, “Renewable Energy Sources Act (EEG) 2009,” www. 

erneuerbare-energien.de/en/topics/acts-and-ordinances/ 

renewable-energy-sources-act/eeg-2009/. 

20 BMU, “Further growth in renewable energy in 

2012,” 2013, at www.erneuerbare-energien.de/en/ 

topics/data-service/renewable-energy-in-figures/ 

further-growth-in-renewable-energy-in-2012/. 

21 See, for example, BMU, “Chronology of the Transformation of the 

Energy System,” www.bmu.de/en/topics/climate-energy/transformation-of-the-energy-system/chronology/, 

updated October 2011. 

22 For capacity markets and other measures with the intention of 

securing sufficient power capacities, see IEA, op. cit. note 1; 

BEE, Die Zukunft des Strommarktes. Anregungen für den Weg 

zu 100 Prozent Erneuerbare Energie (Berlin: 2011); and BEE, 

Kompassstudie Marktdesign (Berlin: December 2012). 

23 See M. Fischedick et al., “Mitigation Potential and Costs,” Chapter 

10 in O. Edenhofer et al., op. cit. note 1. The report analyses 164 

scenarios with regard to renewables potentials, costs, contribution 

to greenhouse gas mitigation and various other aspects, and 

provides an in-depth analysis of four model scenarios. 

24 Ibid. The scenario highlighted is Greenpeace International 

and European Renewable Energy Council, Energy [R]evolution 

(Amsterdam and Brussels: 2012). 

06 


Endnotes Reference Tables 


1 Table R1 Bio-power based on the following sources: International 

Energy Agency (IEA) Energy Statistics online data services, 

2013; REN21, Renewables 2012 Global Status Report (Paris: 2012); 

U.S. Federal Energy Regulatory Commission, Office of Energy Projects 

Energy Infrastructure Update for December 2012; German 

Federal Ministry for the Environment, Nature Conservation and Nuclear 

Safety (BMU), “Renewable Energy Sources 2012,” with data 

from Working Group on Renewable Energy-Statistics (AGEE-Stat), 

provisional data, 28 February 2013, at www.erneuerbare-energien. 

de; State Electricity Regulatory Commission, National Bureau 

of Statistics, National Energy Administration, Energy Research 

Institute, and China National Renewable Energy Center, “China Renewables 

Utilization Data 2012,” March 2013, at www.cnrec.org. 

cn/english/publication/2013-03-02-371.html; ANEEL – National 

Electric Energy Agency, “Generation Data Bank,” (in Portuguese); 

U.K. Department of Energy and Climate Change (DECC), “Energy 

Trends section 6 – Renewables,” and “Renewable electricity 

capacity and generation ET6.1,“ https://www.gov.uk/government/ 

publications/renewables-section-6-energy-trends, updated 9 May 

2013; Électricité Réseau Distribution France (ERDF), “Installations 

de production raccordées au réseau géré par ERDF a fin décembre 

2012,” at www.erdfdistribution.fr; Red Eléctrica de España (REE), 

The Spanish Electricity System, Preliminary Report 2012 (Madrid: 

December 2012), at www.ree.es; Indian Ministry of New and 

Renewable Energy (MNRE), “Achievements,” http://mnre.gov.in/ 

mission-and-vision-2/achievements/, viewed May 2013; Institute 

for Sustainable Energy Policy (ISEP), Renewables 2013 Japan Status 

Report, www.isep.or.jp/jsr2013; Directorate General for Energy 

and Geology (DGEG), Portugal, 2013, at www.precoscombustiveis. 

dgeg.pt. Geothermal power additions and total global installed 

capacity in 2012 of 11.65 GW based on global inventory of geothermal 

power plants compiled by Geothermal Energy Association 

(GEA) (unpublished database), per Benjamin Matek, GEA, personal 

communication with REN21, May 2013. Hydropower based on 955 

GW at the end of 2011 and 26–30 GW added during 2012 from 

International Hydropower Association, London, personal communication 

with REN21, February 2013; more than 975 GW in operation 

in 2011, including a limited number of pumped storage facilities, 

from International Journal on Hydropower & Dams, Hydropower & 

Dams World Atlas 2012 (Wellington, Surrey, U.K.: 2012); 35 GW of 

capacity added in 2012 from Hydro Equipment Association, Brussels, 

personal communication with REN21, April 2012. Based on 

these figures, a best estimate of non-pumped storage hydro capacity 

at year-end 2012 is about 990 GW. Ocean power total capacity 

in 2011 was 526,704 kW, per IEA Implementing Agreement on 

Ocean Energy Systems (OES), Annual Report 2011 (Lisbon: 2011), 

Table 6.2. Little capacity to speak of was added in 2012. See Ocean 

Energy section and related endnotes for more information. Solar 

PV from sources in Endnote 5 in this section. CSP from sources in 

Endnote 6 in this section. Wind power from sources in Endnote 8 

in this section. Modern bio-heat based on 290 GW th 

in GSR 2012, 

which was estimated based on the average of the capacity obtained 

from secondary modern bioenergy for heat in the year 2008 (297 

GWth) presented in Helena Chum et al., "Bioenergy," Chapter 2 in 

Intergovernmental Panel on Climate Change (IPCC), Special Report 

on Renewable Energy Sources and Climate Change Mitigation (Cambridge, 

U.K.: Cambridge University Press, 2011), assuming a growth 

rate of 3%, and the heat capacity in the year 2009 (270 GWth) from 

W.C. Turkenburg et al., “Renewable Energy,” in T.B. Johansson et 

al., eds., in Global Energy Assessment – Toward a Sustainable Future 

(Cambridge, U.K. and Laxenburg, Austria: Cambridge University 

Press and the International Institute for Applied Systems Analysis, 

2012), and assuming a 3% growth rate for 2012. No more-accurate 

data currently exist. Geothermal heating estimates are based on values 

for 2010 (50.8 GW th 

of capacity providing 121.6 TWh of heat), 

from John W. Lund, Derek H. Freeston, and Tonya L. Boyd, “Direct 

Utilization of Geothermal Energy: 2010 Worldwide Review,” in Proceedings 

of the World Geothermal Congress 2010, Bali, Indonesia, 

25–29 April 2010; updates from John Lund, Geo-Heat Center, 

Oregon Institute of Technology, personal communications with 

REN21, March, April, and June 2011. Since use of ground-source 

heat pumps is growing much faster than other direct-use categories, 

historical average annual growth rates for capacity and energy-use 

values for nine sub-categories of direct heat use were calculated for 

the years 2005–10 and used to project change for each category. 

The resulting weighted average annual growth rate for direct-heat 

use operating capacity is 13.8%, and for thermal energy use is 

11.6%. The resulting estimated aggregate average capacity factor 

is 26.8%. Solar collectors for water heating estimates based on 

data from Werner Weiss and Franz Mauthner, Solar Heat Worldwide: 

Markets and Contribution to the Energy Supply 2011, edition 2013 

(Gleisdorf, Austria: IEA Solar Heating and Cooling Programme, May 

2013); and from Franz Mauthner, AEE – Institute for Sustainable 

Technologies, Gleisdorf, Austria, personal communication with 

REN21, 14 May 2013. Weiss and Mauthner estimate that total yearend 

2012 capacity for all solar collectors was 268.1 GW th 

, counting 

95% of the global market, based on available market data from Austria, 

Brazil, China, Germany, and India; data for remaining countries 

were estimated according to the trends for the previous two years. 

Data were adjusted upwards by REN21 from 95% to 100% of the 

global market, for a total of 282.2 GW th 

, and then 90.2% of this total 

was taken to arrive at the total year-end capacity for glazed water 

collectors only (254.55 GW th 

). Net additions in 2012 were calculated 

by subtracting the 2011 year-end total from the 2012 total estimate 

for glazed water collectors. The 2011 year-end total was calculated 

by adjusting up to 100% (from 95%) the 211.5 GW th 

in operation to 

222.63 GW th 

, per Mauthner, op. cit. this note. Ethanol and biodiesel 

production in 2012 from sources in Endnote 4 in this section. 

2 Table R2 from the following sources: For all global data, see 

Endnote 1 for this section and other relevant reference tables. For 

more specific data and sources by country or region, see Global 

Market and Industry Overview section and related endnotes; for 

more specific technology data, see Market and Industry Trends by 

Technology section. Bio-power from sources in Endnote 1 for this 

section. Russia and South Africa from IEA, Medium-Term Renewable 

Energy Market Report 2013 (Paris: OECD/IEA, forthcoming 

2013); EU-27 based on the following sources: REN21, Renewables 

2012 Global Status Report (Paris: 2012); German Federal Ministry 

for the Environment, Nature Conservation and Nuclear Safety 

(BMU), “Renewable Energy Sources 2012,” based on information 

supplied by the Working Group on Renewable Energy-Statistics 

(AGEE-Stat), provisional data, 28 February 2013, p. 18, at www.erneuerbare-energien.de; 

Gestore Servizi Energetici (GSE), “Impianti 

a fonti rinnovabili in Italia: Prima stima 2012,” 28 February 2013; 

U.K. Government, Department of Energy and Climate Change, 

“Energy trends section 6: renewables,” and “Renewable electricity 

capacity and generation (ET6.1),” 9 May 2013, at https://www.gov. 

uk/government/publications/renewables-section-6-energy-trends; 

Électricité Réseau Distribution France (ERDF), “Installations de 

production raccordées au réseau géré par ERDF à fin décembre 

2012,” www.erdfdistribution.fr/medias/Donnees_prod/parc_prod_ 

decembre_2012.pdf; Red Eléctrica de España, The Spanish Electricity 

System: Preliminary Report 2012 (Madrid: 2012); Directorate 

General for Energy and Geology (DGEG), Portugal, 2013, www. 

precoscombustiveis.dgeg.pt. Note that IEA Energy Statistics online 

data services, 2013, were used to check against OECD country 

data from other references used, and 2011 capacity data for 

Austria, Belgium, Canada, Denmark, the Netherlands, and Sweden 

were assumed to have increased by 2%. Geothermal power from 


Association (GEA) (unpublished database), provided by Benjamin 

Matek, GEA, personal communication with REN21, May 2013. 

Ocean power from IEA Implementing Agreement on Ocean Energy 

Systems, Annual Report 2011 (Lisbon: 2011), Table 6.2. Solar 

PV EU-27 from Gaëtan Masson, European Photovoltaic Industry 

Association and IEA Photovoltaic Power Systems Programme 

(IEA-PVPS), personal communications with REN21, February–May 

2013; China, Germany, India, and Spain from IEA-PVPS, PVPS 

Report: A Snapshot of Global PV 1992–2012 (Paris: 2013); United 

States from GTM Research and U.S. Solar Energy Industries 

Association, U.S. Solar Market Insight Report, 2012 Year in Review 

(Washington, DC: 2013), p. 21; Italy from GSE, Rapporto Statistic 

2012 – Solare Fotovoltaico, 8 May 2013, at www.gse.it. Other 

BRICS include: Brazil (7.6 MW) from ANEEL – National Electric 

Energy Agency, “Generation Data Bank” (in Portuguese), viewed 

February 2013; Russia (no capacity to speak of); and South Africa 

(30 MW) from EScience Associates, Urban-Econ Development 

Economists, and Chris Ahlfeldt, The Localisation Potential of Photovoltaics 

(PV) and a Strategy to Support Large Scale Roll-Out in South 

Africa, Integrated Report, Draft Final v1.2, prepared for the South 

African Department of Trade and Industry, March 2013, p. x, at 

www.sapvia.co.za. CSP from sources in Endnote 6 for this section. 

Wind power global total from Global Wind Energy Council (GWEC), 

Global Wind Report – Annual Market Update 2012 (Brussels: April 

2013); from from Navigant’s BTM Consult, International Wind Energy 


2013); and from World Wind Energy Association (WWEA), World 

Wind Energy Report 2012 (Brussels: May 2013); EU-27, Spain, 

Italy, and Russia from European Wind Energy Association, Wind in 

174

Power: 2012 European Statistics (Brussels: February 2013); Brazil, 

China, India, Japan, and South Africa from GWEC, op. cit. this note; 

China also from Chinese Wind Energy Association, provided by Shi 

Pengfei, personal communication with REN21, 14 March 2013; 

United States from American Wind Energy Association, AWEA U.S. 

Wind Industry Annual Market Report, Year Ending 2012 (Washington, 

DC: April 2013), Executive Summary; Germany from BMU, 

op. cit. this note. Hydropower from sources in Endnote 1 for this 

section. Population data for 2011 from World Bank, “Population, 

total,” http://data.worldbank.org/indicator/SP.POP.TOTL. 

3 Table R3 from P. A. Lamers, Ecofys/Utrecht University, Netherlands, 

personal communication with REN21, 14 May 2013. 

4 Table R4 from the following sources: Ethanol and biodiesel production 

and comparison with 2011 based on data from F.O. Licht, 

“Fuel Ethanol: World Production, by Country,” 2013, and from F.O. 

Licht, “Biodiesel: World Production, by Country,” 2013. Ethanol 

data were converted from cubic metres to litres using 1,000 litres/ 

cubic metre. Biodiesel data were reported in 1,000 tonnes and 

converted using a density value for biodiesel to give 1,136 litres 

per tonne based on U.S. National Renewable Energy Laboratory 

(NREL), Biodiesel Handling and Use Guide, Fourth Edition (Golden, 

CO: 2009). The other major sources of biofuel production data 

are the International Energy Agency and the United Nations Food 

and Agriculture Organization; note that data can vary considerably 

among sources. For further details, see Bioenergy section in 

Market and Industry Trends by Technology, and related endnotes. 

5 Table R5 from the following sources: European Photovoltaics 

Industry Association (EPIA), Global Market Outlook for Photovoltaics 

2013–2017 (Brussels: 8 May 2013); EPIA database, May 2013; 

International Energy Agency Photovoltaic Power Systems Programme 

(IEA-PVPS), PVPS Report, A Snapshot of Global PV 1992– 

2012 (Paris: April 2013); Gaëtan Masson, EPIA and IEA-PVPS, 

personal communications with REN21, February–May 2013; 

German Federal Ministry for the Environment, Nature Conservation 

and Nuclear Safety (BMU), “Renewable Energy Sources 2012,” 

based on information supplied by the Working Group on Renewable 

Energy-Statistics (AGEE-Stat), provisional data, 28 February 2013, 

at www.erneuerbare-energien.de; Gestore Servizi Energetici, 

Rapporto Statistico 2012 Solare Fotovoltaico, 8 May 2013, at www. 

gse.it; GTM Research and U.S. Solar Energy Industries Association, 

U.S. Solar Market Insight Report, 2012 Year in Review (Washington, 

DC: 2013); Commissariat Général au Développement Durable, 

Ministère de l’Écologie, du Développement durable et de l’Énergie, 

“Chiffres et statistiques,” No. 396, February 2013, at www. 

statistiques.developpement-durable.gouv.fr. EPIA data for Europe 

and world total were adjusted based on differences between EPIA 

numbers and those used from other sources. 

6 Table R6 from the following sources: Spain from Comisión 

Nacional de Energía (CNE), provided by Eduardo Garcia Iglesias, 

Protermosolar, Madrid, personal communication with REN21, 16 

May 2013; from Red Eléctrica de España (REE), Boletín Mensual, 

No. 72, December 2012, at www.ree.es; and from REE, Boletín 

Mensual, Number 60, December 2011, at www.ree.es; United 

States from U.S. Solar Energy Industries Association, “Utility-scale 

Solar Projects in the United States Operating, Under Construction, 

or Under Development,” updated 11 February 2013, at www.seia. 

org, and from Fred Morse, Abengoa Solar, personal communication 

with REN21, 13 March 2013; Algeria from Abengoa Solar, 

“Integrated solar combined-cycle (ISCC) plant in Algeria,” www. 

abengoasolar.com/corp/web/en/nuestras_plantas/plantas_en_operacion/argelia/, 

viewed 27 March 2012, and from New Energy 

Algeria, “Portefeuille des projets,” www.neal-dz.net/index.php?option=com_content&view=article&id=147&Itemid=135&lang=fr, 

viewed 6 May 2012; Egypt’s 20 MW CSP El Kuraymat hybrid plant 

began operating in December 2010, from Holger Fuchs, Solar Millenium 

AG, “CSP – Empowering Saudi Arabia with Solar Energy,” 

presentation at Third Saudi Solar Energy Forum, Riyadh, 3 April 

2011, at http://ssef3.apricum-group.com, and from “A newly commissioned 

Egyptian power plant weds new technology with old,” 

RenewablesInternational.net, 29 December 2010; Morocco’s Ain 

Beni Mathar began generating electricity for the grid in late 2010, 

from World Bank, “Nurturing low carbon economy in Morocco,” 

November 2010, at http://web.worldbank.org, and from Moroccan 

Office Nationale de l’Électricité Web site, www.one.org.ma, viewed 

7 March 2012; Chile from Abengoa Solar, “Minera El Tesoro Brings 

South America’s First Solar Thermal Plant, Designed and Built by 

Abengoa, Online,” press release (Seville: 2 January 2013), and from 

Chilean Ministry of Energy, “En pleno desierto de Atacama Ministro 

de Energía inaugural innovadora planta solar,” 29 November 2012, 

at www.minenergia.cl (using Google Translate); Australia from the 

following sources: U.S. National Renewable Energy Laboratory 

(NREL), “Lake Cargelligo,” SolarPaces, www.nrel.gov/csp/solarpaces/project_detail.cfm/projectID=261, 

updated 5 February 2013; 

NREL, “Liddell Power Station,” SolarPaces, www.nrel.gov/csp/ 

solarpaces/project_detail.cfm/projectID=269, updated 5 February 

2013; Novatec Solar, “Novatec Solar’s Australian Fuel-Saver Commences 

Operation,” press release (Karlsruhe: 24 October 2012); 

CSP World, “Liddell Solar Thermal Station,” at www.csp-world. 

com/cspworldmap/liddell-solar-thermal-station; Elena Dufour, 

European Solar Thermal Electricity Association, personal communication 

with REN21, 3 April 2013; Thailand from the following 

sources: “Concentrating Solar Power: Thai Solar Energy Completes 

Nation’s First CSP Plant,” SolarServer.com, 7 December 2011; 

“Thailand’s First Concentrating Solar Power Plant,” Thailand-Construction.com, 

27 January 2012; “CSP in Thailand,” RenewablesInternational.net, 

6 February 2012; NREL, “Thai Solar Energy 1,” 

SolarPaces, www.nrel.gov/csp/solarpaces/project_detail.cfm/projectID=207, 

updated 5 September 2012. Pilot projects not in table 

from the following sources: China’s Beijing Badaling Solar Tower 

plant, with 1–1.5 MW capacity (depending on the source), began 

operating in 2012, per CSP World, “China’s first megawatt-size 

power tower is complete and operational,” 30 August 2012, at 

www.csp-world.com; China also from the following sources: CSP 

World, “Yanqing Solar Thermal Power (Dahan Tower Plant),” www. 

csp-world.com/cspworldmap/yanqing-solar-thermal-power-dahan-tower-plant; 

“Hainan, China builds second concentrating 

solar project,” GreenProspectsAsia.com, 2 November 2012 (has 

1.5 MW); NREL, “Beijing Badaling Solar Tower,” SolarPaces, 

www.nrel.gov/csp/solarpaces/project_detail.cfm/projectID=253, 

updated 12 February 2013; Dong Chunlei, “Mirror: By Sunlight 

Producing Green Electricity,” Xinmin Evening News, 29 July 2010, 

at www.e-cubetech.com/News_show.asp?Sortid=30&ID=204 

(using Google Translate); France’s capacity includes two small 

Fresnel pilot plants (totaling

Endnotes Reference Tables 

8 Table R8 from the following sources: Year-end world and 

country data for 2011 from Global Wind Energy Council, Global 

Wind Report—Annual Market Update 2012 (Brussels: April 2013), 

except as noted below. Data for 2012 from ibid. and from the 

following sources: Navigant’s BTM Consult, International Wind 

Energy Development: World Market Update 2012 (Copenhagen: 

March 2013); WWEA, World Wind Energy Report 2012 (Brussels: 

May 2013); China Electricity Council (commercial operation) and 

Chinese Wind Energy Association (installed capacity), provided by 

Shi Pengfei, personal communication with REN21, 14 March and 

20 April 2013; American Wind Energy Association, AWEA U.S. Wind 

Industry Annual Market Report, Year Ending 2012 (Washington, 

DC: April 2013), Executive Summary; German Federal Ministry for 

the Environment, Nature Conservation and Nuclear Safety (BMU), 

“Renewable Energy Sources 2012,” data from Working Group on 

Renewable Energy-Statistics (AGEE-Stat), provisional data (Berlin: 

28 February 2013), p. 18; European Wind Energy Association 

(EWEA), Wind in Power: 2012 European Statistics (Brussels: February 

2013); France had 6,809 MW at the end of 2011 and added 

753 MW in 2012 for a year-end total of 7,562 MW, per French 

Ministry of Ecology, Sustainable Development and Energy, Chiffres 

& Statistiques, No. 396 (Paris: February 2013) (data differ by only 

a few MW from EWEA, op. cit. this note); Portugal had 4,379 MW 

at the end of 2011 and added 880 MW in 2012 for a year-end total 

of 4,525 MW, per EWEA, op. cit. this note. See Wind Power text 

and related endnotes for further world and country statistics and 

details. 

9 Table R9 from Frankfurt School – UNEP Collaborating Centre for 

Climate & Sustainable Energy Finance and Bloomberg New Energy 

Finance, Global Trends in Renewable Energy Investment 2013 

(Frankfurt: 2013). 

10 Table R10 from the following sources: REN21 database; submissions 

by report contributors; various industry reports; EurObserv’ER, 

The State of Renewable Energies in Europe (Paris: 2013). 

For online updates, see the “Renewables Interactive Map” at www. 

ren21.net. 

11 Table R11 from the following sources: REN21 database; submissions 

by report contributors; various industry reports; EurObserv’ER, 

Worldwide Electricity Production from Renewable Energy 

Sources: Stats and Figures Series (Paris: 2013). For online updates, 

see the “Renewables Interactive Map” at www.ren21.net. 

12 Table R12 from REN21 database compiled from all available 

policy references plus submissions from report contributors. 

For online updates, see the “Renewables Interactive Map” at 

ww.ren21.net. 

Programme for the City of Malmö 2009-2020 (Malmo: 2009), at 

www.malmo.se/download/18.6301369612700a2db9180006227/ 

Environmental-Programme-for-the-City-of-Malmo-2009-2020. 

pdf; IRENA, “Renewable Energy Policy in Cities: Selected Case 

Studies - Malmo, Sweden” (Abu Dhabi: January 2013), at www. 

irena.org/Publications/RE_Policy_Cities_CaseStudies/IRENA%20 

cities%20case%207%20Malmo.pdf; Seoul from: City of Seoul, 

City Initiatives, “Overview of Seoul City’s Administration Plan” 

(Seoul: 2011), at http://english.seoul.go.kr/gtk/cg/policies.php, 

and from “City planning of Seoul” (Seoul: 2013), at http://english. 

seoul.go.kr/library/common/download.php?fileDir=/community/&- 

fileName=04_City_Planning_of_Seoul.pptx; Sydney from: City 

of Sydney, Sydney Sustainable Sydney 2030 (Sydney: 2011), at 

www.cityofsydney.nsw.gov.au/2030/makingithappen/documents/ 

Building_Water_Energy_Retrofit_EOI.pdf; Vancouver from: City 

of Vancouver, Green Vancouver, “Greenest City 2020 Action Plan” 

(Vancouver: November 2012), at http://vancouver.ca/files/cov/ 

greenest-city-action-plan.pdf; Yokohama from: City of Yokohama, 

“Climate Change Policy-related pages of the Mid-Term Plan of the 

City of Yokohama” (Yokohama: 2013), at www.city.yokohama.lg.jp/ 

ondan/english/pdf/policies/mid-term-plan-of-the-city-of-yokohama.pdf. 

17 Table R17 from the following sources: REN21 database; 

submissions from report contributors; IEA, World Energy Outlook 

2012 (Paris: 2012); IEA, World Energy Outlook 2011 (Paris: 2011); 

Latin America Energy Organisation (SIEE OLADE), http://siee.olade. 

org. Additional sources include: Developing Asia from Division of 

Developing Asia into China & East Asia and South Asia, as per IEA, 

World Energy Outlook 2011, op. cit. this note; Malawi from Institute 

of Developing Economies, Japan External Trade Organization 

(IDE-JETRO), African Growing Enterprises File, “Electricity Supply 

Commission of Malawi (ESCOM),” 2009, at www.ide.go.jp/English/ 

Data/Africa_file/Company/ malawi05.html#anchor4; Mexico from 

Comisión Federal de Electricidad (CFE), “What is CFE?” www.cfe. 

gob.mx/lang/ en/Pages/thecompany.aspx, viewed 29 February 

2012; South Sudan from World Bank, “Terms of Reference for an 

Electricity Sector Strategy for South Sudan,” posted in International 

Development Business, 2011, at www.devex.com/en/ projects/ 

electricity-sector-strategy-note-for-south-sudan; ECOWAS Centre 

for Renewable Energy and Energy Efficiency (ECREEE), “Draft 

Technical Discussion Paper on General Energy Access in ECOW- 

AS,” prepared for Regional Workshop: Accelerating Universal 

Energy Access Through the Use of Renewable Energy and Energy 

Efficiency,” Accra, Ghana, 24–26 October 2011, at http://ecreee. 

org/sites/default/files/event-att/working_paper_3_-_general_energy_access_0.pdf; 

Information Office of the State Council, China’s 

Energy Policy 2012 (Beijing: 2012), at www.scio.gov.cn/zxbd/ 

wz/201210/t1233774.htm. 

18 Table R18 from IEA, World Energy Outlook 2012 (Paris: 2012). 

Most data are for the year 2010. 

13 Table R13 from the following sources: all available policy references, 

including the IEA/IRENA online Global Renewable Energy 

Policies and Measures database, published sources as given in 

the endnotes for the Policy Landscape Section of this report, and 

submissions from report contributors. 

14 Table R14 from ibid. 

15 Table R15 from ibid. 

16 Table R16 from the following sources: For selected targets 

and policies see the EU Covenant of Mayors; REN21, Renewables 

2011 Global Status Report (Paris: 2011); REN21 Global Futures 

Report (Paris: 2013); and the REN21/ISEP/ICLEI 2011 Global 

Status Report on Local Renewable Energy Policies (latest edition 

May 2011). Selected Examples in Urban Planning from the 

following sources: Glasgow from City of Glasgow, Environment, 

“Sustainable Glasgow Report” (Glasgow: January 2010), at www. 

glasgow.gov.uk/chttphandler.asx?id=10159&p=0); Hong Kong 

from: City of Hong Kong, Blueprint for Sustainable Use of Resources 

2013–2022 (Hong Kong: May 2012), at www.enb.gov. 

hk/en/files/WastePlan-E.pdf, and from Green Hong Kong (Hong 

Kong: May 2012), at www.brandhk.gov.hj/en/facts/factsheets/ 

pdf/05_green_hongkong_en.pdf; Malmo from: Environmental 

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